Taiwan keeps interest rates unchanged to support economic recovery

Taipei, Taiwan's central bank left interest rates unchanged on Thursday, as expected, for the ninth straight quarter to help sustain economic recovery in the country.

At its quarterly policymaking meeting, the bank decided to keep the discount rate at the existing level of 1.375 percent, the rate on accommodations with collateral at 1.750 percent, and the rate on accommodations without collateral at 3.625 percent.

A central bank official said the decision was made because Taiwan's economic growth in 2018 is forecast to be slower than in 2017 and global economic growth has slowed down this year.

The central bank also took into account increasing economic and political uncertainties in the country and decided to adopt a conservative, stable monetary policy in response.

The central bank's announcement that it would leave its key interest rates unchanged was made after the United States Federal Reserve announced Wednesday it would increase interest rates by a quarter point.

The relative stability of the local currency has allowed the central bank to adopt a different policy to the Fed and leave interest rates unchanged this time, according to a market analyst.

Source: Focus Taiwan News Channel