State-owned Bank of Taiwan (台灣銀行) said it will raise interest rates tomorrow, following in the foot-steps of the central bank which increased official interest rates last week.
The Bank of Taiwan will increase the interest rate on both time deposits and time savings deposits by 0.03 percentage points, beginning tomorrow, to cope with the central bank's latest move and to reflect the funding conditions of the market, the bank said on its Web site.
Under the new adjustment, the rate for one-year time deposits will rise to 2.23 percent from 2.20 percent, and the rate for one-year time savings will be hiked to 2.26 percent from 2.23 percent, the bank said.
But the bank will lower its base rate by 0.929 percentage points to 3.756 percent after taking into account the interests of customers following its expected merger with Central Trust of China (中央信託局), the bank said.
The state-controlled Taiwan Cooperative Bank (
Other major commercial banks, including Chang Hwa Bank (
The central bank last week raised its benchmark interest rate for the 10th straight quarter by 0.125 percentage points. The rediscount rate charged to commercial lenders is now 2.75 percent.
The central bank has raised interest rates a total of 1.375 percentage points since September 2004 to curb inflationary pressure.
Industry has complained about the effect of the rate increases on the nation's competitiveness.