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Central bank leaves interest rates unchanged

2017/09/21 17:29:07

CNA file photo

Taipei, Sept. 21 (CNA) Taiwan's central bank announced Thursday that it has decided to leave its key interest rates unchanged after concluding a quarterly policymaking meeting.

It is the fifth consecutive quarter in which the central bank has maintained existing interest rates, with the discount rate at 1.375 percent, the rate of accommodations with collateral 1.750 percent and the rate of accommodations without collateral 3.625 percent.

The outcome of the meeting had been widely expected by market analysts, who said that the local economy is on the road to recovery, although the momentum is not yet strong enough for the central bank to raise interest rates at the moment.

The National Development Council's composite index of monitoring indicators stood at 22 points in July, remaining in the yellow-blue range and signaling sluggish growth for the fourth consecutive month, although the government has raised its 2017 economic growth forecast from 2.05 percent to 2.11 percent.

The analysts said that inflationary pressure remained low, so there is no urgency for the central bank to tighten its monetary policy.

In August, the CPI grew 0.96 percent from a year earlier, with the core CPI, which excludes vegetables, fruit and energy, rising 0.96 percent, indicating stable inflation.

(By Chiu Po-sheng and Frances Huang)