Oct 30, 2012
12:00:00 PM
| Last Updated
We maintain our previous forecast and expect the CBC to remain on hold for the rest of 2012, especially as Q3 growth looks to have been slightly stronger than we previously assumed. Although inflation eased slightly in September, base effects suggest it will climb above 3% again in October. Meanwhile, rising housing prices outside of Taipei City continue to concern the central bank. Given the CBC’s slow normalization of the policy rate in 2010-11, following the global recession of 2009, we expect the central bank to keep its powder dry for 2013,[...]
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