Rates seen unchanged by all 32 economists polled
Inflation still above central bank39;s 2 39;warning39; line
Rate decision on Thursday after 400 p.m. 0800 GMT
TAIPEI, Sept 16 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 lingering inflation concerns, according to economists in a Reuters poll.
The central bank left the benchmark discount rate at 2 as expected at its last quarterly meeting in June, having hiked it to that level from 1.875 at the prior meeting in March ahead of a rise in electricity prices.
At its next quarterly meeting on Thursday it is again expected to keep the rate steady, according to all of the 32 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.
Taiwan39;s inflation has never been as high as in major Western economies the consumer price index CPI in August rose by a higherthanforecast 2.36 but the central bank has made bringing it down a priority and considers 2 its warning line.
Hsu Chihyen of MasterLink Securities said that given Taiwan39;s inflation, standing pat was the most likely outcome.
The central bank will not be following the Fed, Hsu said, referring to the U.S. Federal Reserve which is expected this week to make at least a quarterpoint reduction.
Last week,…