Taiwan Central Bank Director Sees AI Boosting Economy, Low Odds of June Rate Hike

Central Bank of the Republic of China (Taiwan) director Chang Chien-yi said the AI boom is backed by tangible investment from large companies rather than mere speculation. The shift of corporate funding from the banking system to capital markets has also lifted valuations across Taiwan’s semiconductor supply chain, providing important momentum for the domestic economy and financial markets.

Taiwan’s consumer price index rose more than 2% year on year in May, breaching a closely watched threshold and prompting speculation over whether the central bank will raise rates at its June board meeting. Chang said overall inflation remained moderate and there was little urgency to tighten, making a June rate hike unlikely.