Taiwan Dollar: CBC on Hold Ahead of December Hike – DBS Insights & FX Implications

DBS Group Research expects the Taiwan central bank to hold rates on Sep 17, then hike to 2.125% in Dec. This implies near-term TWD stability driven by external factors, but a medium-term bullish bias as the Dec hike narrows interest rate differentials. Traders should monitor CBC communications and economic data for confirmation, and consider TWD strength against weaker peers.