TAIPEI, March 23 (Reuters) - Taiwan stocks were mostly flat in cautious trade on Thursday ahead of the central bank's policy meeting later in the day, at which it is widely expected to hold rates steady.
As of 0131 GMT, the main TAIEX index was largely unchanged at 9,906.61, after closing down at 9,922.66 in the previous session.
The electronics subindex rose 0.1 percent, while the financials subindex remained unchanged.
Among the most actively traded, Cathay Financial Holding Co Ltd, parent company of Taiwan's biggest life insurer, climbed as much as 0.4 percent.
The Taiwan dollar firmed T$0.023 to T$30.480 per U.S. dollar, hovering at its highest in more than two years.
Taiwan's central bank is asking a few custodian banks to stem the flow of fresh capital into its financial markets, two people with direct knowledge of the matter told Reuters on Wednesday.
The central bank issued a statement to comment on the report, saying the reported comments "do not match the facts."
The central bank is expected to hold its policy rate steady for a third straight quarter. (Reporting by Faith Hung; Editing by Sherry Jacob-Phillips)