Taiwan Central Bank Cuts Key Rates

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 [e-mail]

(END) Dow Jones Newswires

June 30, 2016 05:35 ET (09:35 GMT)

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