Sat, Jan 01, 2011 - Page 12 News List

BOT, Land Bank to raise interest rates

By Kevin Chen  /  Staff reporter

Both the Bank of Taiwan (BOT, 臺灣銀行) and the Land Bank of Taiwan (土地銀行) will raise interest rates on Monday after the central bank increased its benchmark interest rates on Thursday.

Other major state-run commercial lenders and Chunghwa Post Co (中華郵政) are expected to follow suit next week.

BOT will raise interest rates on various time deposits and time savings deposits by between 0.03 -percentage points and 0.05 percentage points in response to the central bank’s move, it said in a statement on its Web site.

The nation’s largest state-run bank will also increase the interest rates for passbook savings accounts by 0.01 percentage points, the statement said. The rate hikes also reflect the funding conditions in the market and market competition, it added.

Land Bank will increase the interest rates of various time deposits and time savings deposits by between 0.03 percentage points and 0.09 percentage points, as well as a rise of 0.01 percentage points on the interest rates for various passbook savings accounts, it said in a statement.

Following in the footsteps of central banks worldwide in hiking interest rates in recent months to curb rising asset prices, the central bank announced on Thursday it would increase its key interest rates by 0.125 percentage points, in addition to other new credit tightening measures.

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