Taiwan central bank members flagged inflation worries, minutes show

what happened

Board members of Taiwan's central bank debated in September whether to raise interest rates because of inflation concerns, according to minutes of the latest meeting published by Reuters on Thursday.

The benchmark discount rate stayed at 2%, where it has been since March 2024. Thirteen of the 15 board members backed the hold, citing uncertainty about the global outlook and the possible effect of the Middle East conflict on domestic prices and the economy. Two members dissented. One, who was not named, said they were very worried about inflation, which reached 2.73% in September, the highest since February 2024.

Another member noted that Taiwan's inflation was low and stable compared with many other economies, and argued for time to judge whether higher prices reflected temporary energy shocks or lasting structural change.

why it matters

The hawkish views within the board raise the chances of a future rate increase, a factor for the Taiwan dollar and local equities. The bank also lifted its 2026 growth forecast to 11.48% on booming tech exports, as Taiwan makes most of the advanced chips used in artificial intelligence. The next quarterly rate decision is due on December 17.

market impact

Taiwan dollar: debate over a possible rate hike supports the currency

• ▲Taiwan dollar pressure up — hawkish debate over a possible rate hike favours the currency

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