TAIPEI, Taiwan — Taiwan's central bank cut the island's key lending rate by half a percentage point Wednesday, its sixth rate cut in three and half months, to support the export-dependent economy.

The bank reduced the rate from 2.375 percent to 1.875 percent.

The move came in the wake of a stunning 41.9 percent drop in exports in December from a year earlier.

"(Taiwan's) exports have been on the decline for the past four months due to weak global demand, and this is affecting domestic economic activities," the central bank said.

It said a surge in the unemployment rate, which hit a four-year high of 4.64 percent last November, is also hurting the economy.

The bank's statement said the rate cut would stimulate domestic demand.