GLOBAL SLOWDOWN: The bank lowered its inflation forecast for this year to 0.87%, amid concerns about a drop in demand for oil products and raw materials

Taipei Times
Date: Jun 21, 2019
By: Crystal Hsu  /  Staff reporter

The central bank yesterday kept its rediscount rate unchanged at 1.375 percent for the 12th

consecutive quarter, as the global economy and trade flows slow, warranting a continued accommodative monetary policy.

The bank cut its GDP growth forecast for this year from 2.13 percent to 2.06 percent, as exports and private consumption have fared poorly, central bank Governor Yang Chin-long (楊金龍) told a news conference in Taipei after a quarterly board meeting.

The projection did not factor in US tariff hikes that are likely to be imposed on US$300 billion of Chinese goods if US President Donald Trump and Chinese President Xi Jinping (習近平) fail to end the trade dispute between the two countries at the G20 summit in Japan next week, Yang said.

“Downside risks have increased, with the US-China trade talks playing a critical role in shaping the economic landscape,” Yang said.    [FULL  STORY]