Taiwan’s macro picture remains one of discipline and quiet strength. The central bank is holding its line, inflation is easing, capital controls remain light-touch and the labour market is still pulling its weight. But there are tremors under the surface - from volatile capital flows to growing exposure to external political risk. Taipei is managing the moment but the balancing act is evolving.
Monetary Policy
Rates unchanged, outlook upgraded. The Central Bank of the Republic of China (Taiwan) kept its benchmark rate on hold at 2.00% for a third straight quarter at its September 18 meeting - no surprise there. But it did nudge up its GDP forecast to 4.55% (from 3.05%) and trimmed its inflation projection to 1.75%, reflecting solid semiconductor exports and easing domestic price pressure.
This extends the soft-landing arc we’ve tracked since April: a deliberate pause, inflation drifting lower, and enough policy space to stay steady. We said in June that unless there was a domestic infl...
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