TAIPEI (TVBS News) — Taiwan Central Bank Governor Yang Chin-long left open the possibility of further interest rate hikes while addressing the Legislative Yuan's Finance Committee on Thursday (Nov. 9).
He noted the cycle of raising interest rates has not ended. However, current rates in the U.S., U.K., Europe, Canada, and Australia are near their peak, signaling Taiwan was also approaching its high point.
Yang explained that previous inflation spikes were due to typhoon impacts, sparking speculation about whether the Central Bank would again hike rates.
The Consumer Price Index (CPI) increased by 3% in October, compared with the same month a year earlier.
During a recent third-quarter meeting of the Central Bank's council members, the decision was unanimous to halt rate raises temporarily. However, some members saw divergent economic data and agreed to suspend hikes only for a single quarter, thus not ruling out aggressive responses to possible future inflation.
Market watchers are keenly observing whether interest rate hikes might resume in December due to inflation surpassing 3%.
Yang reassured that the current inflation was primarily due to typhoon impacts, particularly rising vegetable and fruit prices, and promised a close observation of further rate raises in the fourth quarter.
According to Yang, economic growth should remain above 2% this year, although the fourth quarter may see a downward revision to 1%.
