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Taiwan's central bank kept its key interest rates unchanged on Thursday.

The central bank kept the discount rate at 1.375 percent. The rate has been kept unchanged for the eighth quarterly meeting in a row.

The board said a continued accommodative monetary policy stance will help ensure price stability and foster steady economic and financial development.

The bank forecast the economy to grow 2.68 percent this year, reflecting a better-than-expected performance in the domestic economy in the first quarter. Inflation is expected to moderate to 1.21 percent in the second half of 2018.

Given the outlook for economic growth and inflation, as well as signs that policymakers are becoming more worried about external risks, Chang Liu, an economist at Capital Economics, said the bank will keep policy unchanged through the rest of 2018.