Taiwan Central Bank Governor Yang Warns Rate Hike Possible as Inflation Pressure Builds

Taiwan's central bank is responsible for maintaining price and financial stability, while its interest-rate policy also affects mortgages, corporate financing and the New Taiwan dollar. Recent geopolitical risks have driven up global oil prices, and higher energy costs could feed through to domestic prices. If households and businesses come to expect persistent price increases, inflation in Taiwan could become more entrenched.

Central Bank Governor Yang Chin-long recently said policymakers would monitor two scenarios: a sustained rise in global oil prices and the formation of domestic inflation expectations. If price pressures broaden, monetary policy will shift toward tightening, with a rate hike remaining an option. He added that the second quarter would be a critical period for assessing the inflation outlook and policy direction.