Although the Taiwan economy is facing the challenge of export recession, the boom score has also dropped to the lowest of more than ten years, the Central Bank of Taiwan still announced the increase of 12.5 base points on Thursday (March 23), and follow the Fed.Inhibit inflation expectations.
According to Bloomberg, the Taiwan Central Bank has increased the indicator's re -post rate to 1.875%, the highest since 2015.
This is the fifth consecutive hike in Taiwan.The consumer prices announced this month have been more than 2%for 19 consecutive months. In addition, Taiwan Electric Power Corporation will increase the electricity price in April. Yan Zong, vice president of Taiwan Central Bank, said earlier.Inflation expectations psychological problems, Taiwan's central bank policy considers inflation, economic growth and financial stability.
The press release of the Taiwan Central Bank stated that the annual economy will grow mildly. In order to suppress inflation expectations, the central bank council believes that the continuous increase in policy interest rates can help promote stability of prices and help the overall economic and financial stable development.Policy goals; the global financial market is turbulent recently, while the Taiwan banking system is stable, capital is sufficient and liquid, which will not affect financial stability.
Bloomberg quoted Michelle Lam, an economist in Hong Kong, Hong Kong, in France, said, "High interest rates are brave, because the Bank of Taiwan has always been more sensitive to economic growth, andThe export momentum is declining. Today's resolution means that the central bank is obviously worried about the risk of inflation. "
She also predicts that Taiwan's egg supply shortage and electricity prices are about to increase. This year, the inflation may be more than 2%.
It is reported that for the latest forecast of economic outlook, the latest estimates of the Central Bank of Taiwan estimated this year's CPI raised from 1.88%to 2.09%, and this year's economic growth rate was repaired from 2.53%to 2.21%.The Central Bank of Taiwan estimates that the first quarter of the economy will still be negative growth, but the government promotes the economic toughness of the economic toughness and the national sharing economic achievements after the epidemic, which will help support domestic demand. Economic growth in the second half of the year is expected to recover.
The Central Bank of Taiwan said in the announcement that in the future, it will continue to pay attention to the accumulation effect of tightening monetary policy, as well as the spillover effect of monetary policy trends in major economies, and pay close attention to the possible impact of some recent bank crisis in the United States and Europe.Evaluate the impact of these factors and adjust the monetary policy in a timely manner to achieve stability and financial stability of prices.
After the global banking industry has experienced turbulence in the past few weeks, the Federal Reserve still announced on Wednesday (22nd) that it still announced a 25 -basis point of raising interest rates. Chairman Powell emphasized that this year will not cut interest rates.
