Taiwan keeps policy rate unchanged

TAIPEI, June 26 (Reuters): Taiwan's central bank kept its policy rate unchanged at 1.875 per cent, leaving the rate where it has been for the last three years as its governor said a nagging concern for the export-led economy was the uncertain global outlook.
The central bank's quarterly policy meeting maintained an accommodative monetary stance, as expected, though it decided to take steps to cool property prices in the north of the island by raising down payment requirements for high-priced properties.
Consumer price inflation, at 1.61 per cent in May, was below the central bank's 2 per cent comfort level, and Governor Perng Fai-nan told a news briefing that inflation was under control.
Exports and domestic consumption have been in better shape since last year, the governor said. But he voiced concern, noting: "The global economic outlook is still uncertain."
The government has said that it expects Taiwan's economy to grow at 2.98 per cent this year, marking its best showing since 2011.
But, analysts saw the central bank's inaction on rates as a sign of caution.
Another AFP report from Geneva adds: Taiwan has launched a World Trade Organisation challenge to Canada over duties on steel which Ottawa claims is being dumped on its market, sources said on Thursday.
Taiwan informed the WTO that it had made a formal request for consultations with Canada, which is the first step towards a full-blown legal challenge at the Geneva-based body.
Under the rules of the 160-economy WTO, members have 60 days to try to resolve their differences in direct talks.