Taiwan Central Bank Could Start Raising Rates in 1Q 2027

Dow Jones
Sep 18

0615 GMT - Taiwan's central bank could keep monetary policy unchanged in December but begin hiking in 1Q 2027 if inflationary pressures persist, Commerzbank Research analysts say in a note. Gov. Yang Chin-long this week struck a patient tone, noting that "inflation is still under control, so we have time to wait and see," saying its monetary policy "remains on the tight side for now." His comments suggest that the central bank sees little urgency to tighten, as the current stance is sufficiently restrictive to contain inflation. However, the policy statement also signals that policymakers remain mindful of rising inflation risks from external factors, including higher global oil prices and U.S. trade policy uncertainty.

 

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