Taiwan central bank sees consumer prices falling in 2015

[TAIPEI] Taiwan's central bank said on Thursday it expects the headline consumer price index to decline 0.1 per cent this year, but that deflation was not a concern.

Central bank deputy governor Yang Chin-long, who hosted an unscheduled news conference, told reporters that core CPI, however, was expected to grow 0.79 per cent this year.

The briefing came ahead of the government's expected downward revision to Taiwan's economic growth forecast for this year due on Friday, and followed the local dollar's fall to lows not seen in around five years this week after China devalued the yuan.

Mr Yang reiterated that Taiwan's central bank would maintain stability in the foreign exchange market and that the forex rate should not swing wildly.

The Taiwan dollar settled stronger at T$32.366 on Thursday to the US dollar, rebounding from the T$32.465 close of the previous session, which was a low not seen in more than five years.

With a 1.25 per cent loss so far this year against the US dollar, the Taiwan dollar has outperformed its emerging Asia peers.

REUTERS