TAIPEI (Taiwan News) — Central Bank Governor Yang Chin-long (楊金龍) indicated Wednesday that Taiwan is unlikely to introduce additional housing credit controls ahead of the bank’s quarterly board meeting next week.
Appearing before the legislature’s Finance Committee, Yang addressed questions on inflation, interest rates, and housing market regulation before the Central Bank’s June 18 policy meeting, where officials are expected to decide on interest rates and review selective credit controls, per CNA.
Asked whether rising inflation and a strong stock market could prompt an interest rate hike, Yang said the bank is continuing to monitor economic data and will discuss rates and housing-related lending restrictions at next week's meeting before announcing a decision.
While noting that the consumer price index rose in May, Yang said many institutions still view Taiwan’s long-term inflation outlook as stable. Compared with other major economies, he added, Taiwan’s price growth remains relatively moderate.
On housing market regulation, Yang signaled that the Central Bank does not plan to tighten lending restrictions further, telling lawmakers that “selective credit controls end here.”
KMT Legislator Lin Te-fu (林德福) questioned Yang about a recent Central Bank social media post suggesting that a K-shaped economy may require more targeted policy tools than interest rates alone, per CNA.
Yang said the bank has several instruments at its disposal, including exchange-rate management, interest rate adjustments, open market operations, and reserve requirement ratios to regulate liquidity in the financial system.
Lin also asked whether ongoing conflict in the Middle East could weaken the US dollar’s position as the world's leading reserve and transaction currency.
Yang said the US dollar is likely to remain the dominant global currency for the foreseeable future. While discussions about US de-dollarization continue, he said any significant shift away from the US dollar would be a long-term development rather than an immediate concern.
