US Federal Reserve Suspends Interest Rate Hikes and Implements Selective Credit Control in 8 Regions

After more than a year of continuous interest rate hikes, the US Federal Reserve finally suspended interest rate adjustments in June, and the US interest rate remained on hold. The meeting of the central bank’s board of directors and supervisors held this afternoon (15th) also decided to freeze interest rates for five consecutive times. The increased interest rate cycle is calling for cards. However, this board of directors and supervisors launched selective credit control for 8 counties and cities including Liudu and Hsinchu counties and cities. Therefore, although the interest rate has not been raised, the housing market control is still tightened. Experts in the real estate market believe that the home purchase plans of some home buyers have been disrupted, suppressing market transactions, and the “three lows” in the real estate market continue to burn.

The central bank makes another move to crack down on real estate speculation! The upper limit of 70% of the loan ratio for the second household in 8 regions will be implemented tomorrow

Zhou Heming, chief vice president of Taiwan Real Estate, said that whether the central bank raises interest rates is closely related to domestic inflation and international political and economic developments. Since the annual growth rate of domestic inflation in May this year has dropped to 2.02%, compared with previous rises The interest rate has eased a lot; and the domestic real estate market, under the influence of the policy of cracking down on real estate speculation and rising interest rates, has also cooled down compared to the past; in addition, the United States suspended interest rate hikes in June, and the international economic outlook is also conservative. The central bank’s interest rate adjustments It is also more prudent, so this freeze rise is in line with expectations from all walks of life.

Zhou Heming further pointed out that since the previous five interest rate hikes have brought the domestic interest rate level to a new high in nearly 15 years, the interest burden of the industry’s civil engineering financing and consumer housing loans cannot be ignored, and the new system of equal land rights will still be on the way in the second half of the year , the central election and other interference, coupled with the central bank’s increased credit control, so the wait-and-see atmosphere in the market will not dissipate so quickly. The “three lows” trend will continue to spread; however, as the cycle of interest rate hikes comes to an end, the domestic interest rate trend in the future is expected to be flattened, and the impact on the overall housing market will become more and more moderate.

Zhang Xulan, CEO of Taiwan Housing Group Trend Center, said that the central bank has tightened credit controls this time. In the future, the upper limit of second-family loans in Liudu and Hsinchu counties and cities will only be 70%. Since the control measures will come into effect tomorrow, some people who want to change houses may be affected. However, according to past experience, when the interest rate cycle changes from raising interest rates to lowering interest rates, the housing market boom will also expand due to lower interest rates. The property group will wait for the opportunity to seize the opportunity when the interest rate “turns from rising to falling”. Among them, anti-inflation items with high investment returns will be the most popular targets for the property group.

further reading

The central bank makes another move to crack down on real estate speculation! The upper limit of 70% of the loan ratio for the second household in 8 regions will be implemented tomorrow

Pause rate hikes! Yang Jinlong, governor of the central bank, announced that interest rates will remain unchanged and GDP growth will not be guaranteed at 2%.

The central bank stopped raising interest rates!Scholar: Correct decision-making is good for Taiwan stocks

• Ye Yiru, Special Correspondent of Yahoo Finance: 22 years of experience in financial mainstream media, from the bubble of Web1.0 in 2000 to Web3.0 of the Meta universe, witnessed the history of the rise and fall of large and small business groups in Taiwan, and experienced five international financial crises. Think that finance is life, omnipresent, no matter how difficult financial management knowledge should be explained in a simple way. No matter you are young or old, you should manage money. If you don’t manage money, money will ignore you.