Taiwan's Sticky Inflation Strengthens Case for September Rate Hike

Dow Jones
Aug 07

0408 GMT - Taiwan's sticky inflation strengthens the case for a September interest rate hike, says ING economist Lynn Song in a note. Taiwan's inflation has been above the 2% target for a few months, after rising 2.54% in July, and the economy has maintained robust growth. Barring a significant cooling in the August data, the economist suggests both economic activity and inflation provide a compelling argument for a hike when the central bank meets next in September. An unexpected rate increase by the U.S. Federal Reserve in September, which isn't currently part of ING's base case, could further pressure Taiwan's central bank to tighten policy, he adds.

 

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