Taiwan’s central bank reduced its key interest rate as weak global growth weigh on the export-dependent economy.
The bank lowered its key rate to 1.375 percent from 1.50 percent. Economists widely expected the bank to trim its rate. This was the fourth consecutive reduction in rate.
The economy contracted for three straight quarters largely due to weak exports.
Gareth Leather, an economist at Capital Economics expects to see rates cut again this year. The economy is clearly in need of further support, he noted.
With underlying measures of inflation also very low, worries about inflation are unlikely to prevent the central bank from loosening policy further, the economist added.
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