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Bank of Taiwan

cuts prime

lending rate

TAIPEI: The Bank of Taiwan, the island's biggest bank, will cut its prime lending rate to 7.3 percent from 7.5 percent, effective on Monday, the bank said in a statement.

"In line with the central bank's cuts in reserve requirements, we will cut deposit and lending rates starting from August 14," the statement said.

The bank will also cut some time deposit interest rates by 0.25 percent, the statement said.

The Bank of Taiwan last cut its prime lending rate on July 7, when the rate was lowered to 7.5 percent from 7.625 percent.

The central bank announced on Friday cuts to various bank reserve requirements by 0.5 to one percentage point starting on Saturday, a move aimed at helping the ailing stock market.

The bank is the first in Taiwan to cut rates after the central bank's announcement and more banks are expected to follow suit.-Reuter