Taiwan holds rate at 1 7/8%; inflation stays low, uncertainty lingers

By Susanna Moon

Chicago, March 27 - The Central Bank of the Republic of China (Taiwan) again unanimously decided to hold the discount rate at 1 7/8% at its meeting on Thursday.

The move comes amid mild inflation expectations due to less volatile international oil prices, according to a bank notice.

Consumer Price Index annual growth rate averaged 0.39%, with a forecast of CPI annual growth rate to average 1.07% for the year 2014, the bank said.

Meanwhile, there are lingering uncertainties in the global economy with China's economic slowdown and the U.S. Federal Reserve's decision to scale back its asset purchase program.

The board also decided to maintain the rate on accommodations with collateral at 2¼% and the rate on accommodations without collateral at 4 1/8%.

The bank also decided at the meetings held on Sept. 26 and on Dec. 30 to maintain the discount rate at 1 7/8%.

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