Higher-than-expected CPI, Key Rate Likely To Remain

Economic Research	06 December 2016
Taiwan
Economic Update
Higher-than-expected CPI, Key Rate Likely To Remain Taiwan’s CPI growth came in much higher than market expectations, due to rising food prices and fast growing fuel costs. However, core CPI growth remained muted. Looking ahead, we do not expect a rapid rise in Taiwan’s CPI due to a high base effect and mild income growth. On the policy front, the monetary authority will likely hold the policy rate unchanged over the next 12 months, given threat from more rate hikes in the US and unstable economic recovery domestically. Economist:  Zhang Fan| +8621 6288 9611 ext 105
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