DBS anticipates a 12.5bp rate hike from Taiwan's central bank in December to address ongoing inflationary pressures and rising energy costs.
The Taiwan Dollar is positioned for potential appreciation as DBS economist Ma Tieying forecasts a 12.5 basis point hike in the Central Bank of the Republic of China's policy discount rate. This tightening move is driven by persistent inflationary pressures, specifically CPI remaining above the 2% threshold and emerging risks associated with rising electricity prices.
DBS expects a 12.5 basis point increase, bringing the rate to 2.125%.
The hike is prompted by CPI staying above 2% and the build-up of electricity price risks.
DBS economist Ma Tieying projects the Central Bank of the Republic of China will increase its policy discount rate by 12.5 basis points to 2.125% in December. The move aims to combat persistent inflation as the Consumer Price Index remains above the 2% threshold and potential electricity price hikes loom.
The central bank is expected to hike rates to address inflation that remains above the 2% target and to mitigate risks associated with rising electricity prices.