Taiwan continues to chart a steady macro course. Inflation is cooling, jobs are strong and the central bank is keeping rates on hold. But beneath that calm, authorities are fine-tuning their approach to capital inflows and stepping up oversight in quiet but important ways.
Monetary Policy
No surprises here. The Central Bank of the Republic of China (Taiwan) (CBC) kept its benchmark discount rate at 2.00% for a fifth straight meeting on 19th June. This follows the pattern we flagged back in May and June, where we noted the central bank’s clear preference for a steady hand over premature tightening. With inflation now expected to fall to 1.81% this year (down from 1.89%), there’s still no pressure to pivot.
This remains the soft-landing path we mapped out in April - moderating price pressures, strong tech exports and a central bank in no rush to move. Unless we see a shock from overseas or an unexpected rise in core inflation, the CBC will stay on the sidelines through Q3.
FX & Capit...
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