Bank of Taiwan to increase base rate

State-owned Bank of Taiwan (台灣銀行) announced yesterday a raise in its base rate of 0.03 percentage points, effective today, the bank said in a press release.

But the bank said it would keep its savings and lending rates unchanged, the release said.

Under the new adjustment, the bank's base rate will be 3.816 percent, according to the bank.

At the Bank of Taiwan, the base rate is reviewed quarterly and changed to reflect the costs of bank loans or lines of credit.

The adjustable rate mortgage, variable rate mortgage and floating rate mortgage, for instance, are housing loans where the interest rates are periodically adjusted based on a bank's base rate.