TAIPEI, Oct 29 (Reuters) - Taiwan's central bank board members debated in September whether to increase interest rates due to inflation concerns, with two members dissenting from the decision to hold rates, minutes from the latest board meeting showed on Thursday.
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The central bank left the benchmark discount rate unchanged at 2% on September 17, a widely expected move, keeping it at the level it has held since March 2024.
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Thirteen of the 15 board members voted for the hold, saying they were taking a prudent approach to uncertainty over the global outlook and the potential impact of the Middle East conflict on domestic prices and the economy
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One member, who was not named, said they were very worried about inflation, which hit 2.73% in September, the highest since February 2024
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Another member said Taiwan’s inflation rate was low and stable compared with many other economies. The member suggested this allowed time to assess whether higher prices reflected temporary energy shocks or long-term structural changes, which could guide rate decisions at the next meeting
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At the September meeting, the bank also raised its economic growth forecast for 2026 to 11.48% due to booming tech exports. Taiwan makes most of the advanced semiconductors used in artificial intelligence
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The central bank holds its next quarterly rate-setting meeting on December 17
Reporting by Faith Hung and Ben Blanchard; Editing by Xevi Fontdegloria
Source: Reuters