Economics
Taiwan Seen Approaching Zero-Rate World With Mystery Benchmark
- Market attention turns to how low 0.2% overnight rate can go
- Central bank forecast to cut policy rate to 1.5% on Thursday
Cyclists cross a road near stores along Yongkang Street in Taipei.
Photographer: Lam Yik Fei/BloombergThis article is for subscribers only.
Taiwan’s interest rates are much closer to zero than you’d think.
While the central bank is forecast by economists to cut its benchmark to 1.5 percent Thursday, what really matters is how it adjusts an overnight money-market rate policy makers don’t make public. The rate on one-day certificates of deposit, which the authority communicates confidentially to banks, is said to have been lowered 19 basis points to 0.2 percent since the current easing cycle began in August.