TAIPEI (TVBS News) — A local trade group urged Taiwan to follow international interest rate cuts to encourage domestic investment and attract foreign enterprises on Wednesday (Sept. 18).
Lin Por-fong (林伯豐), chairman of the "Third Wednesday Club" (三三會), also expressed his opposition to further electricity rate hikes, citing the upcoming basic wage increase and carbon fee implementation next year.
Lin's remarks came ahead of the Taiwan's Central Bank (中央銀行) board meeting slated on Thursday to discuss potential adjustments to interest rate policies and housing market control measures.
He emphasized that aligning Taiwan's interest rate policy with international trends is crucial for fostering local investment and attracting foreign businesses.
Lin noted that the Ministry of Economic Affairs (MOEA, 經濟部) will hold an electricity rate review meeting at the end of September to decide on October's new rates. He argued against further hikes, pointing out that the basic wage increase and carbon fee set for next year would already burden businesses.
The U.S. Fed announced a two-point rate cut on Thursday (Taiwan time), bringing the benchmark rate to 4.75-5.0%. This marks the Fed's first rate cut in four years.
Previously, when the Central Bank followed the U.S. Fed rate hikes, the government absorbed subsidies for various loans, such as labor relief loans, capital relief and revitalization loans, and policy housing loans. The current focus is on whether the Central Bank will cut rates and address housing speculation