Taiwan cuts key interest rate to 1.75%

FXStreet (Mumbai) - The Taiwan central bank cut interest rates from 1.875% to 1.75% on Thursday in an effort to increase effective demand.

The bank blamed foreign outflows for the depreciation in the Taiwan dollar (TWD) and expressed confidence that the rate cut will benefit prices, result in financial stability and result in economic growth. The bank also said that inflation is unlikely to be very low next year and stressed that the monetary policy in the US does not have to be set according to the Fed’s stance/moves.