By: Tsai Yi-chu and Frances Huang
Taipei, March 19 (CNA) The Central Bank of the Republic of China (Taiwan) is expected to cut its key interest rates by 0.125 percentage points in the upcoming quarterly policymaking meeting scheduled for March 24, according to a forecast made by Standard Chartered Bank.
If the forecast turns out to be true, it will be the third consecutive quarter for the local central bank to lower interest rates at a time when the local economy remained slow in the wake of worse-than-ever export performance amid weakening global demand.
In a policymaking meeting held in December, the central bank slashed interest rates by 0.125 percentage points with the discount rate at 1.625 percent, the rate of accommodations with collateral at 2.0 percent, and the rate of accommodations without collateral at 3.875 percent.
Tony Phoo, a senior economist with Standard Chartered Bank, said that Taiwan’s economy is expected to continue to encounter road bumps and it is possible for the local economy to record a contraction in the first quarter of this year. [FULL STORY]