TAIPEI (TVBS News) — Central Bank Governor Yang Chin-long said on Thursday (March 14) that Taiwan's inflation rate might decline to around 2% this year due to projected international oil price decreases and modest service price increases.
The Central Bank is expected to hold the 2024's first board of directors meeting next Thursday. Current market anticipations predict the re-discount rate will remain at 1.875%, with no changes foreseen.
Yang noted two primary considerations for the Central Bank's decision to maintain rates in December last year. First, last year's inflation rate in Taiwan had been falling gradually compared to 2022, and this year's inflation rate is further expected to decline to around 2%.
Secondly, both output gaps in 2023 and 2024 are projected to be negative. With the global economic growth rate continuing to fall and the economy facing numerous risks in 2024, the domestic economic recovery might be further impacted.
Regarding Taiwan's inflation trends, Yang said that future uncertainties include potential geopolitical conflicts and weather conditions.