Taiwan central bank says it will respond appropriately to economic uncertainty

31/5/2022 11:59:00 AM

Taiwan central bank says it will respond appropriately to economic uncertainty

Taiwan central bank says it will respond appropriately to economic uncertainty

TAIPEI :Taiwan's central bank said on Tuesday it expects economic growth to decline and inflation to rise this year and that it will take appropriate steps in a timely way to respond to economic uncertainty.At its last quarterly meeting in March, the central bank unexpectedly raised the benchmark discount rat

LinkedIn TAIPEI :Taiwan's central bank said on Tuesday it expects economic growth to decline and inflation to rise this year and that it will take appropriate steps in a timely way to respond to economic uncertainty.Copy to clipboard https://str.to warn away 30 Chinese aircraft from its air defence zone on Monday.LinkedIn TAIPEI: Taiwan on Monday (May 30) reported the largest incursion since January by China's air force in its air defence zone, with the island's defence ministry saying Taiwanese fighters scrambled to warn away 30 aircraft in the latest uptick in tensions.

At its last quarterly meeting in March, the central bank unexpectedly raised the benchmark discount rate by 25 basis points (bps) to 1.375 per cent to help fend off inflation.The ministry said the AT-3 jet crashed during a training mission from the Gangshan air base in the southern city of Kaohsiung and the body of the pilot had already been found.It has repeatedly said it will head in a tightening direction this year, following other major economies, and that it sees inflation as a key criteria for rate moves.The missions often take place in the southwestern part of its air defence identification zone, or ADIZ, close to the Taiwan-controlled Pratas Islands.In its annual financial stability report, the central bank said globally growth would slow and inflation increase due to the war in Ukraine, with financial markets affected by uncertain factors like the expected withdrawal of monetary stimulus.President Tsai Ing-wen is"deeply saddened" by the loss and has instructed the Defence Ministry to investigate what happened, her office added in a statement.While Taiwan's export and private investment is expected to continue, consumption will be hit by the island's COVID-19 outbreak, and Russian's invasion of Ukraine and supply chain bottlenecks will push up prices, it added.Taiwan sent combat aircraft to warn away the Chinese aircraft, while missile systems were deployed to monitor them, the ministry said.

"It is expected that economic growth will slip and inflation will rise," the central bank said.The pilot was rescued alive.The aircraft flew to the northeast of the Pratas, according to a map the ministry provided, which is still far from Taiwan itself.This year is seeing uncertainly due to the"tense geopolitical situation", soaring raw material prices, and the accelerated tightening of monetary policies by major economies, increasing financial market volatility and the downside risk to the global economy, it added."The bank will pay close attention to the possible fall-out, and take appropriate measures in response to promote domestic financial stability.Last year, two F-5E fighters, which first entered service in Taiwan in the 1970s,." Taiwan's April consumer price index (CPI) rose an on-year 3.China has previously said such moves were drills aimed at protecting the country's sovereignty.38 per cent, above market expectations for a 3.China has stepped up pressure on Taiwan to accept its sovereignty claims.

25 per cent increase and rising above the central bank's 2 per cent target for the ninth month in a row, though inflation was still lower than in other major economies like the United States.Taiwan's statistics agency last week lowered its gross domestic product (GDP) forecast for 2022 to 3.He added that such an attack would “dislocate the entire region and be another action similar to what happened in Ukraine”.91 per cent, down from 4.42 per cent growth forecast in February, even as its raised its export prediction for the year.The central bank will give its revised forecast for economic growth this year at its June 16 rate-setting meeting, having predicted a 4.President Xi Jinping has previously vowed to regain control over Taiwan – which has been self-governed since the end of the Second World War – and has not ruled out using military force to do so.

05 per cent expansion in March.Source: Reuters.

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