Taiwan – tight (!) policy?

The CBC last week claimed that even with the policy rate staying at 2%, its monetary stance "remains on the tight side". I am not persuaded, but it is worth studying the bank's argument.

Paul Cavey

Sep 25, 2026 • 8 min read

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East Asia Today

Japan being back from holiday allowed the delayed released of the BOJ's underlying inflation data for August. Holidays elsewhere mean no other data, so I've spent some time looking at the claims from Taiwan's central bank that its monetary policy stance is "on the tight side".

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East Asia Today

The further rise in upstream prices in China is likely to keep new monetary easing off the agenda. Japan's flash September PMIs softened, but manufacturing sentiment is still strong compared with recent years. M2 growth in Taiwan slowed, but private sector credit growth remains strong.

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East Asia Today

Highlights of a longer note on fiscal conditions in Korea and Taiwan. Consumer confidence in Korea in September remained elevated. Taiwan's IP growth slowed in August, but that follows the surge seen in the previous 6M. Retail sales growth is stable at around 5% YoY.