TAIPEIL: Taiwan's central bank kept its policy rate unchanged at 1.875 percent, leaving the rate where it has been for the last three years, as expected with the export-reliant economy's momentum still weak and US interest rates at record lows.
The central bank's quarterly policy meeting maintained an accommodative monetary stance, as consumer price inflation, at 1.61 percent in May, was below the central bank's 2 percent comfort level. Exports and domestic consumption have been in good shape since last year, central bank Governor Perng Fai-nan told a news briefing after the policy meeting.
But he voiced concern over an uncertain outlook for the global economy.
The governor also said inflation was under control.
Growth of exports and export orders in May missed expectations, suggesting demand of the global tech sector and key markets such as China may not be so solid.
Having said that, April's export growth of 8.9 percent was a 15-month high.
To further cool down the island's property markets in northern Taiwan, the central bank said it will take steps, including raising down payment requirements for high-priced properties.
Some sectors, particularly the stock market, are booming, and Taiwan's overall economy is set to grow at 2.98 percent this year to mark its best showing since 2011.
Among other macroeconomic measures, industrial output continues a steady upward climb, with the index hitting a single-month record high in May, while the jobless rate of 3.99 percent in May was the lowest since July 2008.
The main TAIEX share index recently notched its highest closing level in more than six years, and has attracted more inflows of foreign funds than anywhere in Asia except India.
Most economists expect the central bank to raise rates in about a year, tracking the US Federal Reserve.
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