Taiwan's central bank will probably leave interest rates unchanged today after cutting them to a record low last year, and may raise borrowing costs as early as June to keep pace with US rates, economists said.
The bank will probably leave its rediscount rate, charged to commercial lenders for 10-day loans, at a record-low 2.125 percent at its quarterly board meeting, according to economists. But they expect an increase later this year. The bank will announce a decision after tomorrow's meeting, which starts at 3pm.
Rising US demand for computer chips and mobile phones will probably revive growth in Taiwan this year after the worst recession on record in 2001, and expected US rate increases may prompt Taiwan to follow suit. Still, Taiwan will probably wait for clearer signs of a rebound before tightening credit, analysts said.
"Taiwan's economic recovery is stable, but manufacturers' profits haven't revived," said Ellen Lee, an economist at International Securities Corp (
The bank slashed interest rates by more than half between December 2000 and December 2001, in 11 separate moves, to stem the economy's slide. It may have to change course in coming months as rising US rates raise the risk that investors will move money out of Taiwan seeking better returns.
The US Federal Reserve left interest rates unchanged last week and dropped its 15-month view that slowing growth is the biggest threat to the US economy, fueling expectations it may raise rates in coming months.
Taiwan's economy will probably expand 0.5 percent this quarter from a year ago.
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
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CHINA REACTS: The patrol and reconnaissance plane ‘transited the Taiwan Strait in international airspace,’ the 7th Fleet said, while Taipei said it saw nothing unusual The US 7th Fleet yesterday said that a US Navy P-8A Poseidon flew through the Taiwan Strait, a day after US and Chinese defense heads held their first talks since November 2022 in an effort to reduce regional tensions. The patrol and reconnaissance plane “transited the Taiwan Strait in international airspace,” the 7th Fleet said in a news release. “By operating within the Taiwan Strait in accordance with international law, the United States upholds the navigational rights and freedoms of all nations.” In a separate statement, the Ministry of National Defense said that it monitored nearby waters and airspace as the aircraft