Mar 23, 2017GeneralComments Off on Central bank leaves interest rates unchanged
Taipei--Taiwan's central bank said Thursday after concluding a quarterly policymaking meeting that it has decided to leave its key interest rates unchanged.
It is the third consecutive quarter in which the central bank has maintained its interest rates, with the discount rate at 1.375 percent, the rate of accommodations with collateral at 1.750 percent, and the rate of accommodations without collateral at 3.625 percent.
The conclusion of the meeting had been widely expected by the market, since the strength of the local economic recovery is not strong enough for the central bank to tighten its monetary policy.
In mid-February, the Directorate General of Budget, Accounting and Statistics (DGBAS) raised its forecast for Taiwan's 2017 economic growth to 1.92 percent from an earlier estimate of a 1.87 percent rise.
Analysts said that inflation in Taiwan remained in check, so there was no urgent need for the central bank to raise interest rates.
According to the DGBAS, Taiwan's consumer price index is expected to rise 1.08 percent in 2017, a mild pace of increase.