Economics
Taiwan to Tolerate Stronger Currency, Inflation: Decision Guide
- Local dollar is the best-performing Asian currency this year
- Drought, commodity boom set to drive inflation higher
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Taiwan’s central bank will need to grapple with a number of new risks when it decides interest rates Thursday, including faster inflation, a sudden Covid-19 outbreak and its currency hovering at a 24-year high.
The central bank is expected to keep its benchmark lending rate unchanged at a record low of 1.125%, according to all of the 26 economists surveyed by Bloomberg. That would give policy makers room to support the economy as it recovers from the latest virus outbreak while also avoiding driving up the currency further and hurting exporters’ profits.