Taiwan central bank leaves discount rate unchanged

Analyst says keeping the discount rate at 1.875% came as no surprise.

DBS Group Research said:

The Taiwan central bank (CBC) yesterday left the discount rate unchanged at 1.875% as widely expected. The CBC said in the policy statement that they will closely monitor the future inflation risks. This should be aimed at anchoring public inflation expectations amid the recent oil price increases, especially because the government is now mulling plans to hike electricity prices and adjust the domestic fuel-pricing mechanism.

The rhetoric on inflation does not suggest a rate hike anytime soon. As the growth recovery is expected to be moderate in the coming quarters, the pass-through effects of higher oil and electricity prices would not be significant and the underlying core inflation should stay largely stable. Note that policymakers yesterday maintained a conservative view about the global growth outlook, and expecting domestic growth to be lower than last year’s because of the weakness in exports and investment. A resumption of rate hikes will require global recovery to continue (European crisis can be contained), and domestic growth to match the potential rate in a sustainable manner.

Our base case forecast is that the CBC will hold rates steady at 1.875% through 2012, before raising rates from 1Q13.

The people you want to reach are already in this room.

Every quarter, SBR lands on the desks of the founders, CFOs, and directors running Asia's most consequential companies. Every day, they open our newsletter and read our website. It's a room that took twenty years to build — and it's the one most of our partners are trying to get into.

The good news is that the door is open. We work with companies on thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The shape of the right partnership depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.

If you have something this room should know about, tell us. We'll tell you honestly whether we can help, and how.

No rate cards until we understand the brief. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia