Taiwan’s central bank might raise interest rates in 2022
Raising interest rates before other countries could negatively impact the country’s real estate sector
In Taiwan, Central Bank Governor Yang Chin-long said that its monetary policy will be tightened to align with the trends in the global economy.
Taiwan News reported that the announcement induced speculation that interest rates in 2022 will be raised by the Central Bank.
However, Kuomintang legislators voiced concerns that Taiwan could misjudge the current inflationary trend as temporary as the U.S. Federal Reserve did.
Yang responded, “Taiwan’s situation is not the same as the U.S.”
Yang noted that Taiwan’s price index is well under control and that there is no risk of misjudging the trends.
For Taiwan to adjust its interest rates, Yang mentioned three conditions: the interest rate hikes among major global economies, the current inflation rate (and likely future rate), and overall economic recovery.
More: Taiwan to be a regional hub for solutions in environmental protection
Taiwan’s decision to raise interest rates must consider similar hikes in major countries.
If the country raises rates first, this might cause a negative impact on the property sector as the currency could appreciate.
The Property Report editors wrote this article. For more information, email: [email protected].
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