Taiwan central bank guides overnight interbank rate lower to 0.20%

[TAIPEI] Taiwan's central bank on Saturday guided the overnight interbank rate down, a move that came a day after government data showed the economy remained weak in the fourth quarter of last year.

Traders said the overnight interbank rate was lowered to 0.20 per cent from Friday's 0.23 per cent.

The last time the central bank began guiding market rates lower it followed the moves by cutting the official policy rate. The central bank cut the discount rate in late December, the second rate cut it made in 2015 in a bid to revive flagging economic growth.

Taiwan's financial markets are open on Saturday for a special trading session ahead of the upcoming Lunar New Year holiday.

REUTERS