EXTERNAL INFLUENCES: The US and China’s trade spat and plateauing smartphone sales pose challenges to Taiwan’s trade and growth outlook, the banking group said

Taipei Times
Date: Mar 16, 2019
By: Crystal Hsu  /  Staff reporter

A subdued growth outlook, muted inflation and weak external demand are likely to prompt the central bank to extend its accommodative monetary policy and keep the rediscount rate unchanged at 1.375 percent next week, Australia and New Zealand Banking Group Ltd (ANZ) said yesterday.

The board of the nation’s top monetary policymaker is due to meet on Thursday to review policy rates. The central bank has stayed put for the past 10 quarters, citing negative output gaps and mild inflation.

The US-China trade conflict and the downside risks it poses to the Taiwanese economy would keep local policymakers concerned, ANZ said in a note.

“We expect the policy rate to hold steady through this year, barring an unexpected hawkish outlook by the US Federal Reserve or a sharp jump in domestic inflation,” ANZ said.    [FULL  STORY]