Economists forecast discount rate of central bank to remain at current level

The China Post news staff

Economists are forecasting that the Central Bank of the Republic of China (Taiwan) will retain the current discount rate of 1.875 percent.

The discount rate is the interest rate charged to banks to borrow short-term funds directly from the central bank. Economists from institutions within the private banking sector, such as Barclays Bank, The Australia and New Zealand Banking Group Limited (ANZ) and Standard Chartered Bank forecast that the rate will be the same this year due to a lack of change in consumption levels.

ANZ Greater China economist Raymond Yeung (楊宇霆) said the nation’s consumption fluctuation is under control. The economy is forecast to see growth so it is reasonable to see the bank keep the same rate this year, said the economist.