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TAIWAN: Central Bank to Remain on Hold 

TAIWAN
  • Taiwan’s Central Bank is proving hawkish when compared to its regional peers and today’s interest rate decision should see more of the same.
  • In the face of property market rally the likes many of not seen before, the central bank has not followed regional peers in cutting rates.
  • Housing prices have reached all-time highs earlier this year with rampant demand driving median house prices to 16 times median household income, compared to 3.8 times in Singapore.
  • Interest rates for new homes are offered in Taiwan in the mid 2% range and with longer terms available and principal holidays for five years, there is little sign of the demand subsiding.
  • The Central Bank has increased the amount of deposits the banks have to lodge with them in a bid to drain liquidity from the system and could possibly raise this again today.
  • All 25 economists surveyed on BBG are predicting no change and as Taiwan enters its 24th straight quarter of house price appreciation, there appears little chance the Central Bank will change course. 
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  • Taiwan’s Central Bank is proving hawkish when compared to its regional peers and today’s interest rate decision should see more of the same.
  • In the face of property market rally the likes many of not seen before, the central bank has not followed regional peers in cutting rates.
  • Housing prices have reached all-time highs earlier this year with rampant demand driving median house prices to 16 times median household income, compared to 3.8 times in Singapore.
  • Interest rates for new homes are offered in Taiwan in the mid 2% range and with longer terms available and principal holidays for five years, there is little sign of the demand subsiding.
  • The Central Bank has increased the amount of deposits the banks have to lodge with them in a bid to drain liquidity from the system and could possibly raise this again today.
  • All 25 economists surveyed on BBG are predicting no change and as Taiwan enters its 24th straight quarter of house price appreciation, there appears little chance the Central Bank will change course.