Taiwan central bank leaves interest rate unchanged

Taiwan's central bank on Thursday left its key interest rate unchanged, saying the island's economy was being hit by weakening overseas demand. "The global slowdown is affecting our economy... and the central bank will maintain the current rate in order to boost economic growth and stabilise consumer prices," it said in a statement after its quarterly board meeting. Taiwan's trade-dependent economy has shown signs of weakness in recent months as demand slows from its major markets in China, the United States, and debt crisis-hit Europe. Last month, Taiwanese industrial output fell for the first time in two years while export orders grew at their slowest pace in 27 months due to sluggish overseas demand for its signature high-tech products. Taiwan's economy grew a slower-than-expected 3.42 percent in the third quarter and the government has lowered its 2011 forecast from 4.56 percent to 4.51 percent.