EDITORIAL: Monetary outlook for the yearBenefiting from Taiwan’s strong economic growth and stable inflation, the central bank at its quarterly board meeting on Dec. 18 last year kept its policy rates unchanged for the seventh consecutive quarter since its most recent rate hikes in March 2024. This year, the central bank’s monetary policy would remain a focus of the market. Based on messages delivered at last month’s board meeting, the central bank seems determined to follow its own path. In a nutshell, there is adequate leeway for the central bank to keep rates unchanged this year, while observing how the global economy evolves and what monetary policies its global peers implement. The main challenge for Taiwan is whether it could take advantage of the evolution of AI to pave the way for its long-term, sustainable economic growth.
