Taiwan's central bank held its key interest rate unchanged for the fifteenth policy session in a row on Thursday, citing brighter economic outlook amid low inflation and improving labor market conditions.
The Board of the Central Bank of the Republic of China (Taiwan) left its key rate unchanged at 1.875 percent. The decision was in line economists' expectations.
"Domestic economy improves steadily, and inflation is low and stable with a temporary softening in inflation expectations," the bank said in a statement. "Against this backdrop, the Board judges that a policy rate hold will help maintain price and financial stability and foster economic growth."
The previous change in the discount rate was a 12.5 basis points hike in June 2011.
The bank said that positive results from a series of measures it took since June 2010 to rein in banks' real estate-related risks, and the government's policy efforts towards a reasonable property tax levy, have successfully helped restrain activity in the housing market and expectations for rising housing prices.