Taiwan's c.bank sees 2017 GDP slightly higher than this year

Taiwan's c.bank sees 2017 GDP slightly higher than this year

TAIPEI, Sept 26 (Reuters) - Taiwan's economic growth in 2017 will be slightly above this year's, and its current loose monetary policy was sufficient to spur economic growth, according to a central report submitted to the island's legislature.

The report, seen by Reuters on Monday, said it would be difficult for the export-driven economy to grow substantially as unemployment was rising and domestic consumption remained soft.

"China's economic restructuring, the Brexit and the increasing chances the Fed will raise interest rate at year-end will further cloud global economic growth prospects," said the report.

Central bank governor Perng Fai-nan is set to brief the report to lawmakers on Wednesday, a day before the bank holds its latest quarterly policy rate setting meeting.

The central bank is expected to keep its benchmark interest unchanged, after cutting four times in a row to support the economy.

The median forecast of 15 economists surveyed by Reuters was for the discount rate to stay at 1.375 percent.

Improvements in Taiwan's manufacturing and export-related activity, as well as mild inflationary pressures gave the central bank room to pause, economists say. (Writing by Faith Hung; Editing by Simon Cameron-Moore)

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