Taiwan Holds Interest Rates Steady Despite Fast Growth

Taiwan’s central bank is freezing interest rates even as AI hardware exports are driving double-digit growth, while traditional industries and first-time home buyers face greater pressure. The central bank says inflation has risen since June, but attributes the increase to temporary supply shocks, including higher oil prices linked to the Iran war. Central Bank Governor Yang Chin-long says inflation is currently around 2% and expects it to decline next year, giving the central bank time to observe the situation. Meanwhile, Japan’s central bank has raised its benchmark rate to its highest level in 30 years.