Taiwan central bank says market should not read too much into rate hike expectations

[TAIPEI] Taiwan's central bank governor, Yang Chin-long, said on Monday the market was misplaced in expecting an interest rate hike to let the island's currency appreciate.

Mr Yang made the comments during a parliament session.

Last week, the central bank kept its policy discount rate unchanged at 1.375 per cent for the seventh consecutive quarterly meeting as global demand for electronics continued to boost the island's economy and inflation remained mild.

The central bank also lifted the island's 2018 economic growth forecast to 2.58 per cent, from the 2.42 per cent projected by the statistics agency in February.

REUTERS