Taiwan central bank stands pat on rates

TAIPEI, Dec 21 (Reuters): Taiwan's central bank kept its policy rate unchanged on Thursday, as inflationary pressures remain mild in spite of healthy export growth and improving consumption.

As expected, the central bank kept its discount rate steady at 1.375 per cent for the sixth consecutive quarterly meeting.

It had cut the rate four times in a row from late 2015 to help lift the trade-reliant economy out of a mild recession.

"Since the last governors' meeting in September, the global economy has seen growth across the board, and the outlook for next year is also stable," the central bank said in a statement.

It will maintain appropriate loose monetary policy, the central bank said, adding that there were uncertainties in the global economy and financial conditions.

All 16 analysts surveyed in a Reuters poll had expected no change in the policy rate.

The central bank said inflation was expected to be mild and stable against a backdrop of rising pressure, with the 2018 consumer price index forecast to rise 1.12 per cent.

Taiwan's GDP is expected to grow 2.35 pct next year, the central bank added, slightly higher than the statistics agency's projection in November. GDP growth for 2017 was expected to come in at 2.61 per cent, the central bank said.

Some analysts expect the Central Bank of the Republic of China (CBC) to maintain its monetary policy stance in the near term, possibly raising rates in the second half of 2018 on stronger economic growth.