The Central Bank of the Republic of China (Taiwan) left its key interest rates unchanged for the sixth consecutive quarter as the discount rate remained stable at 1.375%, the rate on accommodations with collateral unchanged at 1.75% and the rate on accommodations without collateral also stable at 3.625%.
According to the central bank's forecast, the CPI and core CPI, which excludes energy items, fruits and vegetables, should average 0.61% and 1.02% on an annual basis in 2017. The bank sees a mild inflation outlook with an increase in both the CPI and core CPI of 1.12% year over year in 2018.
In addition, it expects the domestic economy to grow by 2.41% in the fourth quarter of 2017 and by 2.61% for the whole of 2017. The central bank forecasts a further improvement of 2.35% in 2018 on the back of an expected recovery in the world economy.