Taipei, Taiwan's central bank decided on Thursday at its quarterly policymaking meeting not to adjust its key interest rates, citing a stable inflation outlook and other global factors.
The decision to maintain the discount rate at 1.375 percent, rates on accommodations with collateral at 1.750 percent, and accommodations without collateral at 3.625 percent for the 12th consecutive quarter was in line with market expectations.
"The outlook on inflation remains stable, considering factors like a moderate price movement and a widening negative output gap," the central bank said in a press release.
Supported by domestic demand and in reflection of a low base period, Taiwan's economic strength is considered moderate, even though the global economy is at risk of sliding, the bank said.
Furthermore, Taiwan's real interest rates were in the midrange compared with major economies, thus "keeping the policy rate unchanged and maintaining an accommodative monetary policy stance would help ensure price stability and foster steady economic and financial development," the central bank said.
Meanwhile, the bank revised its 2019 economic growth projection for Taiwan from 2.13 percent to 2.06 percent, citing progress in U.S.China trade negotiations as a major variable for economic growth.
Apart from the U.S.China trade issues, the central bank also mentioned the stalemate on the United Kingdom's withdrawal from the European Union, geopolitical tensions in some regions, and the fluctuation of crude prices as factors that might affect the global economy.
Source: Focus Taiwan News Channel