Rate seen unchanged by 29 out of 31 economists
C.bank governor indicated will be no surprises for rate decision
Rate decision due on Thursday after 4 p.m. 0800 GMT

TAIPEI, June 11 Reuters Taiwan39;s central bank is expected to keep its policy interest rate unchanged this week and to stay the course until late next year as it deals with persistent concerns over inflation, according to economists in a Reuters poll.

The central bank, in a surprise move at its last board meeting in March, hiked the benchmark discount rate to 2 from 1.875, wary of continued inflationary pressures and ahead of a rise in electricity prices.

At its next quarterly meeting on Thursday it is expected to keep the rate steady, according to 29 of the 31 economists surveyed.

Economists who answered questions on the outlook beyond this week predicted the bank would start cutting rates only from the third quarter of 2025, with the median estimate a drop to 1.875.

Central bank Governor Yang Chinlong indicated last week there would be no surprises at this meeting.

Taiwan39;s consumer price index CPI rose by 2.24 in May, slightly higher than forecast and also above the 1.95 recorded in April, and it is expected to further increase in June due to rainy weather impacting food prices.

Kevin Wang, an economist at Taishin Securities Investment Advisory, said the central bank will likely keep the rate unchanged this time, but there could be another rise in the offing three months hence.

Inflation will…