Taiwan Central Bank Cuts Key Rates
June 30 2016 - 5:50AM
Dow Jones News
Taiwan's central bank cut interest rates for the fourth straight
meeting Thursday, taking action to support an economy struggling to
regain momentum amid slow global growth and limp domestic
consumption.
The central bank's unanimous decision to trim its main policy
rate to 1.375% from 1.50% follows a lowering of the government's
growth forecast for the year and a continuing flow of data that
fails to point to a clear recovery in the island's economy.
The decision to ease policy was widely expected by economists.
Many of them say more cuts are also likely later in the year to
help an economy that has been battered by China's slowdown and
feeble global demand.
The central bank expressed concern about slow global growth and
the possible after effects of the U.K.'s decision to leave the
European Union. It generally sees its rate cuts as an easing
measure that can support the economy, spur inflation and maintain
financial stability.
Taiwan has been harder hit than most Asian economies by China's
deceleration and weak global demand, due to its dependence on
exports—almost 40% of which go to China, its biggest overseas
market. Lower smartphone demand is weighing on demand for
components from the island's electronics manufacturers, which
supply parts for Apple Inc., among others.
Write to Paul Jackson at paul.jackson@wsj.com
(END) Dow Jones Newswires
June 30, 2016 05:35 ET (09:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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