According to Reuters’ recent report, the Taiwan central bank is set to maintain its tightening policy in an effort to rein in inflation.
In a surprising move, the Taiwan central bank recently increased its benchmark rate from 1.875 percent to 2 percent, aiming to counter inflationary pressures amidst growing expectations.
This decision comes in response to inflationary trends and an imminent 11 percent surge in electricity prices, particularly impacting industrial consumers.
The Taiwan central bank intends to evaluate the repercussions of these price hikes on inflation and is prepared to make gradual adjustments to monetary policy. Despite the tightening measures, inflation in Taiwan remains relatively subdued compared to other major economies.
Additionally, the central bank projects a 2.16 percent uptick in the consumer price index (CPI) and a 2.03 percent rise in core CPI attributed to the electricity price hikes, with expectations of inflation gradually easing over the course of the year.
