Beginning Thursday, the benchmark discount rate will be lowered to 1.5 per cent, the secured loans rate to 1.875 per cent, and the unsecured loans rate to 3.75 per cent, the bank said in a statement.

The cut - the sixth in three months - came after the government said Taiwan's December exports dived a record 41.9 per cent to US$13.64 billion (S$20 billion) year on year, while imports plunged 44.6 per cent to US$11.78 billion.

The central bank last month slashed interest rates by 75 basis points, its biggest cut since December 1982, aimed at helping domestic enterprises lower their costs and bolster local demand.

The policy easing began on September 16 with a reduction in the reserve requirement ratio, after four years of tightening. -- AFP