By Yifan Wang
Taiwan's central bank on Thursday left its benchmark rate, citing loose monetary policies globally and economic risks amid a resurgence of the coronavirus pandemic at home.
The move came as the island voiced concerns over a slowdown in economic growth in the second half of the year, after Taiwan tightened its pandemic prevention restrictions since May, when local infections rose sharply. The central bank said it forecasts a 5.08% GDP growth for the full year, lower than an estimate of 5.64% growth from the Directorate-General of Budget, Accounting and Statistics.
Taiwan has kept its key interest rates at the same level for over a year, after the central bank in March 2020 cut rates for the first time in nearly four years in efforts to boost the pandemic-pressured economy.
The Central Bank of the Republic of China (Taiwan) said its benchmark discount rate will remain at 1.125%. It also maintained the secured loan rate at 1.50% and kept the unsecured loan rate at 3.375%.
"Although the recent local pandemic outbreak has affected consumption momentum, the domestic economy could grow stably this year with support from rising exports and private investments," the central bank said.
Earlier on Thursday, Indonesia stood pat on its benchmark rates, while the U.S. Fed overnight penciled in interest increase plans by end-2023, sooner than expected.
Write to Yifan Wang at firstname.lastname@example.org
(END) Dow Jones Newswires