China News Agency, Taipei, December 15th Taiwan's monetary policy authority decided to raise the policy interest rate by 0.125 percentage points on the 15th. A rate hike is possible.
According to reports from Central News Agency and Lianhe News Network, Taiwan’s monetary policy authorities held a meeting on the same day and decided to raise interest rates. 2.125%, 4%, implemented since December 16.
The agency also lowered Taiwan's economic growth rate to 2.91% in 2022 and 2.53% in 2023. It is estimated that the local consumer price index (CPI) and core CPI will increase by 1.88% and 1.87% year-on-year respectively in 2023.
The head of the above-mentioned agency stated that monetary policy depends on economic data, and the monetary policy authority must ensure that the inflation rate is below 2%. The agency predicts that the growth rates of CPI and core CPI in the first quarter of 2023 will be 2.35% and 2.44%, respectively It will only drop to 1.64% and 1.93% in the second quarter.
This suggests that a rate hike is still possible in the first quarter of 2023.