Central bank leaves interest rates unchanged as expected

Taipei, March 19 (CNA) The Central Bank of the Republic of China (Taiwan) on Thursday decided to leave its key interest rates unchanged after wrapping up a quarterly policymaking meeting.

It was the eighth consecutive quarter the central bank maintained its monetary policy. The latest decision had been anticipated by the market, in particular after the U.S. Federal Reserve left interest rates intact overnight.

After Thursday's decision, Taiwan's discount rate will stay at 2 percent, still the highest level in 15 years, with the rate on accommodations with collateral at 2.375 percent and the rate on accommodations without collateral at 4.250 percent.

According to Cathay United Bank chief economist Lin Chi-chao (林啟超), the central bank needs more time to observe the situation as tensions in the Middle East have sent international crude oil prices over US$100 per barrel.

Fed Chair Jerome Powell said Wednesday war between the U.S, Israel and Iran has created uncertainties in the economy after the American central bank concluded a two-day policymaking meeting.

Local economists have also argued that the robust economic performance in Taiwan due to strong exports during the current AI boom allows little room for the central bank to cut interest rates for the moment.

In February, the Directorate General of Budget, Accounting and Statistics raised its forecast of Taiwan's gross domestic product growth to 7.71 percent from a 3.54 percent estimate made in November.