Economics
Taiwan Keeps Key Rate Unchanged as Focus Shifts to Fed Move
- Rate likely to be lifted in 2022, Governor Yang says
- Bank raised CPI and GDP forecasts for this year and next
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Taiwan’s central bank kept borrowing costs at a record low Thursday but said that it would hike rates in 2022 after the U.S. Federal Reserve signaled a hawkish shift.
The benchmark interest rate was left at 1.125%, as predicted by all 25 economists in a Bloomberg survey. The central bank raised its forecasts for economic growth and inflation for this year and next, and said it would adjust monetary policy in a “timely manner” if needed given uncertainties in global inflation.