Taiwan CBC likely to maintain a pro-growth monetary policy stance in June

The Taiwan central bank (CBC) is scheduled to hold its next quarterly Monetary Policy Committee (MPC) meeting on 25 June. 

Weaker-than-expected Q1 GDP growth +3.37% y/y and the lack of upside risk to headline inflation justify maintaining a pro-growth stance. , unless the economic recovery gains momentum and there are signs of imminent upside risk to inflation. 

"The CBC is expected to keep the policy re-discount rate unchanged at 1.875% for a 17th consecutive quarter", says Standard Chartered. 

The current downtrend in headline inflation is likely temporary, and due mainly to weak global oil and commodity prices, the reduction in the electricity bill since April, and the delay in taxi-fare hikes