Taiwan: CBC 2Q minutes centered on inflation debates

Research evidence excerpt

Taiwan: CBC 2Q minutes centered on inflation debates

J P M O R G A N Asia Pacific Economic Research

30 July 2026

Taiwan: CBC 2Q minutes centered

on inflation debates

• Most board members still viewed inflation as supply-driven and cushioned by Emerging Markets Asia, Economic

government measures, but the discussion tilted noticeably more hawkish. and Policy Research

• Greater attention was paid to service inflation, CPI expectations, oil pass- Tingting Ge

through and negative real rates, culminating in two dissenting votes for a hike. (852) 2800-0143

tingting.ge@jpmorgan.com

• Governor Yang’s Legislative Yuan July testimony reinforced a hawkish hold Jiayi Li

message and signaled more room to observe further inflation developments. (852) 2800-5229

• We still expect CBC to stay on hold through year-end, with macroprudential jiayi.c.li@jpmorgan.com

Tongfang Yuan measures favored over rate hikes as inflation gradually moderates in 2H.

(852) 2800-0085

The CBC published the minutes for its 2Q meeting today. The minutes showed that tongfang.yuan@jpmorgan.com

JPMorgan Chase Bank, N.A., Hong Kong Branch

while most board members still viewed inflation as largely supply-driven and

cushioned by government stabilization measures, the discussion tilted noticeably

more hawkish. Compared with previous meetings, board members devoted greater

attention to service-sector inflation, inflation expectations, oil-price pass-through

and negative real rates, culminating in two dissenting votes in favor of a rate hike.

The key message is not that inflation has become an immediate policy concern, but

that the bar for tightening appears lower than before.

Several members argued that Taiwan's growth remains narrowly concentrated in

AI-related exports and investment rather than domestic demand.