Taiwan: CBC to keep its policy rate unchanged - TDS

Analysts at TDS expect Taiwan’s central bank, CBC to keep its policy rate unchanged at 1.375%.

Key Quotes

“There is a small minority (3 out of 33) looking for a hike but we think the CBC will hold off amid pressure from trade tensions on its hi-tech industries. As he noted in April governor Yang is not one to surprise markets and therefore any hike will be well flagged.”

“The pace of GDP growth slowed slightly in Q1 though domestic demand is picking up and inflation remains close to the top end of the CB’s 0-2% range. We see risks of a hike at the next meeting on 27 September.”