Taiwan Central Bank Likely to Sound a Little Hawkish but Stand Pat

Dow Jones
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0408 GMT - Taiwan's central bank is likely to keep its rates unchanged next week, DBS senior economist Ma Tieying says in a note. There is little urgency for the central bank to hike rates as August headline CPI was softer-than-expected, while core CPI eased marginally. However, the CBC is expected to maintain a somewhat hawkish tone, she says. Policymakers are likely to remain vigilant about the risk of persistent supply-side inflation due to the renewed rise in global oil prices. They are also expected to highlight the risk of second-round inflationary pressures from a potential increase in inflation expectations, higher wages and domestic consumption recovery.

 

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