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Central Bank's Q2 Board Meeting Approaching, Scholars Predict Monetary Policy Shift to Easing

Central Bank's Q2 Board Meeting Approaching, Scholars Predict Monetary Policy Shift to Easing

The Central Bank is set to hold its second quarter board meeting, with market attention focused on whether the country will shift from tight monetary policy to easing. According to reports by Li Zhenglong, despite uncertainties in U.S. tariffs, the country's export performance has been strong due to advance stockpiling by businesses, with expectations that inflation for the year will be below 2%.

With several major global central banks having already cut interest rates, the question remains whether our central bank will follow the U.S. Federal Reserve. Recent commentary from scholars suggests that the bank is unlikely to consider raising rates, and with inflation domestically slowing down, the likelihood of easing is high.

Professor Wu Darun from National Central University emphasized that the current uncertainties around the countervailing tariffs and the exchange rate of the New Taiwan Dollar indicate that the central bank may need to adjust its monetary policy, with a potential for rate cuts and reserve requirement reductions in the future.