0916 GMT - Taiwan's central bank could leave its main policy rate unchanged throughout 2025 given its strong economy, Capital Economics senior Asia economist Gareth Leather says in a note. The central bank held its key policy rate steady Thursday, in line with market expectations. Surging demand for AI-related products could continue to support the island economy this year after its GDP expanded 4.59% last year, the economist says. CE expects Taiwan's GDP to grow 4% this year, while the central bank was less optimistic and projected growth at 3.1%. Meanwhile, thanks to rapid productivity growth, Taiwan's inflation has been contained despite the strength of its economy, he adds. Taiwan could be one of two economies in Asia, alongside Malaysia, that isn't expected to loosen policy this year, Leather adds. (sherry.qin@wsj.com)
(END) Dow Jones Newswires
March 20, 2025 05:16 ET (09:16 GMT)
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