By: Bernie Chiu and Evelyn Kao
The Central Bank of the Republic of China (Taiwan) will likely leave rates unchanged when its board meets on June 22 because there are no clear signs of economic recovery and considerable uncertainty still exists in international financial markets, according to analysts.
The meeting will come just a week after the U.S. Federal Reserve lifted its key interest rate by a quarter of a percentage point on June 14, its third rate hike in six months, and announced it would cut its balance sheet by reducing its bond and securities holdings later this year.
A bank executive in Taiwan said Taiwan’s economic recovery remains sluggish, and an easy money policy is still needed to support economic growth. [FULL STORY]