MNI BRIEF: BOJ Wants More Wage Data, US Econ Outlook – Ueda

MNI: GERMANY GFK JANUARY CONSUMER CLIMATE -21.3

MNI BRIEF: BOJ To Manage Policy To Achieve 2% Target

MNI: PBOC Net Injects CNY14.5 Bln via OMO Thursday

MNI: PBOC Sets Yuan Parity Higher At 7.1911 Thurs; -2.12% Y/Y

CORRECTS-MNI INTERVIEW: CBRT To Cut 2-3 Times By Feb-Cangoz

MNI: FRANCE DEC MANUF SENTIMENT AT 97

US EIA: CRUDE OIL STOCKS EX SPR -0.93M TO 421.0M DEC 13 WK

MNI: US NOV HOUSING STARTS 1.289M; PERMITS 1.505M

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

TAIWAN: Central Bank to Remain on Hold 

TAIWAN
EM BulletBulletAPACTaiwanEmerging Market News
  • Taiwan’s Central Bank is proving hawkish when compared to its regional peers and today’s interest rate decision should see more of the same.
  • In the face of property market rally the likes many of not seen before, the central bank has not followed regional peers in cutting rates.
  • Housing prices have reached all-time highs earlier this year with rampant demand driving median house prices to 16 times median household income, compared to 3.8 times in Singapore.
  • Interest rates for new homes are offered in Taiwan in the mid 2% range and with longer terms available and principal holidays for five years, there is little sign of the demand subsiding.
  • The Central Bank has increased the amount of deposits the banks have to lodge with them in a bid to drain liquidity from the system and could possibly raise this again today.
  • All 25 economists surveyed on BBG are predicting no change and as Taiwan enters its 24th straight quarter of house price appreciation, there appears little chance the Central Bank will change course. 
173 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
  • Taiwan’s Central Bank is proving hawkish when compared to its regional peers and today’s interest rate decision should see more of the same.
  • In the face of property market rally the likes many of not seen before, the central bank has not followed regional peers in cutting rates.
  • Housing prices have reached all-time highs earlier this year with rampant demand driving median house prices to 16 times median household income, compared to 3.8 times in Singapore.
  • Interest rates for new homes are offered in Taiwan in the mid 2% range and with longer terms available and principal holidays for five years, there is little sign of the demand subsiding.
  • The Central Bank has increased the amount of deposits the banks have to lodge with them in a bid to drain liquidity from the system and could possibly raise this again today.
  • All 25 economists surveyed on BBG are predicting no change and as Taiwan enters its 24th straight quarter of house price appreciation, there appears little chance the Central Bank will change course.