Taiwan's 2Q GDP Growth Likely to Support September Rate Hike

Dow Jones
08/03

0312 GMT - Taiwan's strong 2Q GDP data boost the odds of a central-bank rate hike in September, says UOB's Ho Woei Chen in a report. Data released Friday showed the country's 2Q GDP surged 12.92% on year versus UOB's estimate of 10.8% growth, the economist notes. "Composition of growth became more balanced in 2Q as stronger domestic demand complemented continued external sector strength," the economist says. Also, the "ongoing AI investment cycle continues to provide a structural tailwind to Taiwan's economy," she says. Taiwan's robust economic growth have strengthened the case for a 12.5bps rate hike at Taiwan central bank's September meeting, the economist adds.

 

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