US and Japan raise rates simultaneously, while Taiwan's central bank holds for the 10th consecutive meeting; Governor Yang Chin-long (楊金龍) says, “We will follow our own path”

Against the backdrop of global monetary policy developments, the Federal Reserve and the Bank of Japan each decided to raise rates by 0.25%, while Taiwan's central bank simultaneously announced that it would keep rates unchanged for the 10th consecutive meeting and ease credit restrictions targeting the housing market. The measures eased the loan-to-value ratio for second-home mortgages from 60% to 70% and scrapped the requirement for developers to begin construction within 18 months on land-acquisition loans.

Governor Yang Chin-long (楊金龍) said, “Economic conditions differ from country to country. We will follow our own path,” reaffirming that Taiwan has adopted a “quantitative control” monetary policy since 2024. Taiwan's economic growth forecast was revised up to 11.48%, while CPI was projected at 2.03% and core CPI at 2.16%. The central bank also said its monetary policy decisions would take into account K-shaped divergence across industries and the impact on traditional industries and first-time homebuyers.

At its September meeting, the Federal Reserve raised the federal funds target range to 3.75%–4.00%, with all voting members in favor. Chair Wash said inflation remained elevated and described the move as a partial reversal of easing.

The Bank of Japan decided on the 18th to raise rates by 0.25%, bringing its policy rate to 1.25%. The yen subsequently fell as far as ¥157.66 per dollar, and the market judged the Bank of Japan's hawkish signal to be unclear.

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