TAIPEI Taiwan's central bank cut its 2023 economic growth forecast for the export-reliant economy due to sluggish global demand, but as expected, it kept rates on hold on Thursday as inflationary pressures cool.
The central bank, in a unanimous decision, left the rate at 1.875%, where it has stood since March, extending a pause in its current round of tightening which began in March of last year. It raised rates five times by a total of 75 basis points to rein in price pressures.
All economists in a Reuters poll had predicted the central bank would stand pat.
The move follows the U.S. Federal Reserve's decision to keep interest rates steady on Wednesday, though it signalled policy would remain slightly restrictive for some time.
Taiwan's central bank again cut its 2023 estimate for economic growth to 1.46% from a forecast of 1.72% in June, but predicted a rebound in 2024 with growth of 3.08%.
It also trimmed its consumer price index (CPI) forecast for this year to 2.22% from a previous prediction of 2.24%, but said it saw it falling to below 2% next year.
(Reporting by Liang-sa Loh and Faith Hung; Additional reporting by Yimou Lee; Writing by Ben Blanchard; Editing by Jacqueline Wong)
