Taiwan remains stable but the landscape is shifting. The foundations are still holding but the strain is starting to show. Taiwan’s macro fundamentals remain solid. Rates are steady, inflation is cooling and employment is strong. But beneath that surface, the system is adjusting. The central bank is nudging housing policy, regulators are stepping up scrutiny and capital flows are being watched more closely. This is no longer just balance. It is active rebalancing.
Monetary Policy
No surprises from the Central Bank of the Republic of China (Taiwan) (CBC). At its mid-September meeting, the Central Bank held the benchmark rate at 2% for a fifth straight time. Inflation is still drifting lower. 1.75% is now forecast for 2025, down from 2.18% in 2024. GDP growth was upgraded to 4.55%. This comes on the back of strong tech exports and stable domestic demand. [We flagged this slow-and-steady stance in our April and May briefs].
But what’s new this month is nuance. The CBC is now trying to sof...
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