State-run banks hike ratesStaff writer, with CNASeveral major lenders are to raise interest rates for depositors today, after the central bank increased its benchmark rediscount rate from 1.375 percent to 1.5 percent on Thursday. After major lenders raise their time deposit rates by 12.5 basis points, depositors who own NT$1 million (US$33,647) in time deposit accounts are to receive an additional NT$3,750 in interest annually. The bank is also to raise its two-year time savings deposit floating rate by 0.125 percentage points to 1.25 percent, while its three-year time savings deposit floating rate is to rise 13 basis points, higher than the central bank’s hike, to 1.285 percent, it said. State-run Taiwan Cooperative Bank (合庫銀行) is to increase its floating rates for one-year to three-year time savings deposits and the fixed rates for its one-year to three-year time savings deposits by 0.125 percentage points. While deposit rates are to rise in line with the central bank’s rate hikes, market observers said the banking sector would raise mortgage rates by more than 12.5 basis points soon to have a higher interest spread, which is expected to improve banks’ profitability.
