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Taiwan central bank keeps key interest rates unchanged

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.