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TAIPEI: Taiwan’s central bank cut its 2023 economic growth forecast for the export-reliant economy due to sluggish global demand, but as expected, it kept rates on hold on Thursday (Sep 21) as inflationary pressures cool.
The central bank, in a unanimous decision, left the rate at 1.875 per cent, where it has stood since March, extending a pause in its current round of tightening which began in March of last year. It raised rates five times by a total of 75 basis points to rein in price pressures.
All economists in a Reuters poll had predicted the central bank would stand pat.
The move follows the US Federal Reserve’s decision to keep interest rates steady on Wednesday, though it signalled policy would remain slightly restrictive for some time.
Taiwan’s central bank again cut its 2023 estimate for economic growth to 1.46 per cent from a forecast of 1.72 per cent in June, but predicted a rebound in 2024 with growth of 3.08 per cent.
It also trimmed its consumer price index (CPI) forecast for this year to 2.22 per cent from a previous prediction of 2.24 per cent, but said it saw it falling to below 2 per cent next year.
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