S&P lauds na­tion, keeps sovereign credit rate AATAIPEI,

The China Post - - LOCAL -

Stan­dards and Poor’s on Thurs­day main­tained its fa­vor­able out­look for Tai­wan by keep­ing its “AA-” sovereign credit rat­ing un­changed.

The in­ter­na­tional credit rat­ing agency said that Tai­wan’s credit rat­ing is a re­flec­tion of its strong mon­e­tary flex­i­bil­ity, sound mon­e­tary man­age­ment, and abil­ity to main­tain one of Asia’s low­est in­fla­tion rates.

The agency also lauded Tai­wan’s lively pri­vate sec­tor, mod­er­ate gov­ern­ment debts and strong ex­ter­nal po­si­tion, with for­eign re­serves tal­lied at US$414.689 bil­lion as of the end of March, down US$3.137 bil­lion month-on-month.

The agency, how­ever, warned that it is ex­pect­ing Tai­wan to see mild in­fla­tion­ary pres­sure in the medium term.

Nonethe­less, it said Tai­wan’s siz­able for­eign re­serves will aid eco­nomic growth, and help con­tain gov­ern­ment debt in the next two years. It added that the acu­men of Tai­wan’s cen­tral bank, and nim­ble mon­e­tary poli­cies will also help stave off im­pacts of in­ter­na­tional de­vel­op­ments.

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