By Crystal Hsu / Staff reporterThe central bank yesterday kept the rediscount rate unchanged at 1.375 percent for the seventh consecutive quarter because of concern that GDP growth might take a hit from the brewing trade war between the US and China. Local electronic parts suppliers in particular would bear the brunt of unfavorable trade terms, which could raise production costs and dampen trade volume around the world, he said. Global trade barriers are an ominous threat to Taiwan’s economy due to its heavy exposure to the global technology supply chain, Yang said. When US imports drop by one unit, output in the Asian supply chain declines by 2.6 units, a central bank report showed. Companies should develop resilience strategies, because the bank will not intervene unless it spots excessive, irregular activity, he added.

Source: Taipei Times March 22, 2018 15:56 UTC