Taiwan central bank says it will hike interest rates if inflation is too hot next year
TLT•Taiwan will raise interest rates if next year's consumer price inflation exceeds 2% by a large margin, central bank Governor Yang Chin-long said. The bank kept rates on hold last month and said it was moving in a tightening direction.
1. Rate policy and inflation
Taiwan will raise interest rates if next year's consumer price index exceeds 2% by a large margin, central bank Governor Yang Chin-long said at a parliamentary session. He said inflation around 2% would be acceptable and that the level was a reference point, not a ceiling.
2. Other policy comments
Yang said Taiwan would not necessarily follow a US rate increase because the two economies have different inflation situations. He attributed this year's relative weakness in the Taiwan dollar to foreign investors taking profits on Taiwan stocks and said 80% of Taiwan's foreign exchange reserves remain in US bonds.
