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Taiwan central bank seen holding fire after back to back rate cuts: poll

Friday, September 23, 2016 - 14:38

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Taiwan's central bank will likely keep its benchmark interest unchanged when it meets for its quarterly policy meeting on Thursday, after cutting rates four times in a row to support the economy, a Reuters poll showed.

[TAIPEI] Taiwan's central bank will likely keep its benchmark interest unchanged when it meets for its quarterly policy meeting on Thursday, after cutting rates four times in a row to support the economy, a Reuters poll showed.

The median forecast of 15 economists surveyed was for the largely-symbolic discount rate - the rate at which the central bank lends to financial institutions mainly for short term purposes - to stay at 1.375 per cent.

Nine economists expected the central bank to keep the policy rate unchanged, five forecast a cut and one called for a hike.

If the central bank stays on hold, it would snap a rate-cut cycle that began a year ago. The key rate has been chopped four times, or at each quarterly meeting since Sept 2015, to revive flagging growth.

sentifi.com

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Recent improvements in Taiwan's manufacturing and export-related activity as well as mild inflationary pressures have provided leeway for the central bank to stay its hand, economists say.

REUTERS

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