Published on ShanghaiDaily.com (http://www.shanghaidaily.com/)
http://www.shanghaidaily.com/sp/article/2008/200811/20081110/article_380027.htm
Taiwan in fourth interest rate cut
Created: 2008-11-10
Author:Chinmei Sung
TAIWAN has lowered its benchmark interest rate for the fourth time in two months, adding to a series of cuts in the United States, Europe and Asia aimed at preventing a prolonged global recession.
The island has reduced the discount rate on 10-day loans to banks to 2.75 percent from 3 percent, effective today, Perng Fai-nan, head of Taiwan's banking authorities, said yesterday.
The move follows two similar-sized reductions last month and a 0.125-percentage-point cut announced on September 25.
All three cuts since the start of last month have taken place outside the banking authorities' scheduled quarterly policy meetings, according to Bloomberg News.
Trade figures released last Friday showed Taiwan's exports, which are equivalent to about half of the island's gross domestic product, dropped 8.3 percent from a year earlier last month, the biggest decline in more than three years.
The island has reduced the discount rate on 10-day loans to banks to 2.75 percent from 3 percent, effective today, Perng Fai-nan, head of Taiwan's banking authorities, said yesterday.
The move follows two similar-sized reductions last month and a 0.125-percentage-point cut announced on September 25.
All three cuts since the start of last month have taken place outside the banking authorities' scheduled quarterly policy meetings, according to Bloomberg News.
Trade figures released last Friday showed Taiwan's exports, which are equivalent to about half of the island's gross domestic product, dropped 8.3 percent from a year earlier last month, the biggest decline in more than three years.
Xinhua
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