Taiwan’s Surprise Rate Hike Is Seen as ‘One and Done’
- Analysts say Taiwan’s central bank unlikely to tighten again
- Bond yields surged as traders respond to unexpected rate move
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Taiwan central bank’s surprise decision to raise interest rates to counter stubborn inflation will likely be its last for this cycle, according to analysts.
Policymakers increased their benchmark rate to 2% from 1.875% Thursday, pointing out the move was primarily aimed at curbing inflation expectations, which may remain high as an electricity-price hike looms. All 27 economists surveyed in a Bloomberg poll had forecast no change.