The central bank of Taiwan announced on Saturday that it will pursue an “appropriate” monetary policy and employ a variety of strategies to support price stability and the economy in 2019.
Although inflation, a major concern for the central bank, has been slowing, Taiwan’s trade-dependent economy is sputtering in the face of deepening global economic problems, with its exports this month down 13.1% on-year.
The consumer price index recorded its lowest level in nine months in November, up 2.35 percent over a year earlier.
In a report to parliament ahead of governor Yang Chin-long receiving legislator questions on Monday, the central bank said in detailing its intentions for next year that it will carefully examine the domestic and foreign economic and financial situations.
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It stated, without going into any detail, that it will “implement an appropriate monetary policy and correctly deploy various monetary policy tools” to “promote price stability and assist in economic progress.”
The central bank will convene its quarterly rate-setting meeting on Thursday.
The bank increased the benchmark discount rate by 12.5 basis points to 1.625% during the most recent meeting in September.
At its meeting next week, the central bank will also publish an updated prediction for economic growth this year and next.
The gross domestic product estimate for Taiwan for 2022 was reduced by the statistics office last month from 3.76% to 3.06%. It also lowered the export projection for the year and indicated it would decrease in 2023.