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Central Bank Raises Interest Rates by Half a Point, Yang Jinlong Briefs on Bitcoin: It's Like a Roller Coaster, Buckle Up

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Central Bank Raises Interest Rates by Half a Point, Yang Jinlong Briefs on Bitcoin: It

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Taiwan Central Bank Decides to Raise Interest Rates by Half a Percentage Point

The Taiwan Central Bank convened a joint meeting of its board of directors and supervisors on the 21st and decided to raise interest rates by half a percentage point to combat inflation. This is the first rate hike since the second quarter of 2023 and will be effective from tomorrow, the 22nd.

The central bank also revised up its economic growth forecast for this year to 3.22%, while CPI was adjusted to 2.16%.

The discount rate, secured loan facility rate, and short-term loan rate have all been raised by 0.125%, with the following data:

  • Discount Rate: 1.875% → 2%

  • Short-Term Loan Rate: 4.125% → 4.25%

  • Secured Loan Facility Rate: 2.25% → 2.375%

Central Bank: Rate Hike to Help Price Stability and Promote Stable Economic Development

The central bank pointed out that given the global economic situation, it was originally expected that domestic inflation would gradually decline. However, considering the higher price increases since 2021 and the proposed electricity price hike in April this year, there are concerns about inflation expectations.

The board believes that raising interest rates will help promote price stability and assist in overall stable economic development.

The central bank emphasized that it will continue to monitor developments such as electricity price adjustments, domestic inflation, and remain vigilant about potential impacts from risks such as China's economic downturn and geopolitical issues.

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Central Bank Governor Yang Chin-long: Bitcoin is Like a Roller Coaster

In a presentation on "Issues of External Concern," the central bank also highlighted the progress of Bitcoin and spot ETFs.

Yang Chin-long stated:

Bitcoin is like a roller coaster, and we remind investors to fasten their seatbelts for safety.