Several Taiwan central bank board members raise off-cycle rate hike possibility
2022.07.28 14:10
FILE PHOTO: A staff member stands beside the Taiwanese Central Bank logo in Taipei, Taiwan February 26, 2018. REUTERS/Tyrone Siu
TAIPEI (Reuters) – Several board members of Taiwan’s central bank suggested that it could make an off-cycle rate hike before the next scheduled meeting in September, minutes of their June meeting showed on Thursday.
The central bank, at its last quarterly meeting in June, raised its policy rate for the second time this year and in line with expectations by 12.5 basis points (bps) to 1.5%, reflecting concerns about quickening inflation.
“Several board directors discussed economic uncertainties lying ahead and a wider U.S.-Taiwan interest rate differential, and stated that the bank’s monetary policy conduct should be more nimble,” the bank minutes said.
“If needed, the bank may hold emergency meetings of executive directors before the next scheduled meeting (in September) so as to make swift, nimble policy adjustments as warranted.”
The central bank is scheduled to hold its next quarterly rate-setting meeting on Sept. 22.
The central bank will make timely adjustments to monetary policy considering both global moves and domestic economic performance, but is not in a rush to raise rates outside of the bank’s usual schedule, two sources told Reuters last week.
The U.S. Federal Reserve on Wednesday raised the benchmark overnight interest rate by three-quarters of a percentage point to a level between 2.25% and 2.50%. The move came on top of a 75 basis point hike last month and smaller moves in May and March, as the Fed stepped up efforts to cool inflation.
