Taiwan Holds Key Interest Rates

Taiwan Holds Key Interest Rates

Taiwan Central Bank left its key interest rate unchanged on Thursday, as widely expected, for the fifth time in a quarterly meeting.

The Central Bank kept the discount rate to 1.375 percent.

The policy, that the preservation of the key interest rates would help the economy recover and maintaining financial stability.

The bank said it is with attention to the changes in the economic and financial situation and take appropriate monetary policy to achieve its goals.

Chang Liu, an economist at Capital Economics, said that prices remain on hold for this year, but through 2018.

The economist said, the economy is expected to pick up further in the coming months.

Inflation averaged 0.7 percent so far this year. In the case of the wage growth is relatively weak, money growth at multi-year lows and there is some free capacity left in the economy, price pressure is likely to remain low, Chang said.