The governor of Taiwan’s central bank, Yang Chin-long said on Wednesday that even though the country’s economy would develop more slowly than expected this year

The Taiwan central bank said that rate increases will stop in 2023 as inflation is under control during its most last quarterly conference in Dec, when it increased its policy interest rate (TWINTR=ECI) by 12.5 bps to 1.75%.

“According to latest estimates, inflation will decrease to about 2% with a 2% Gross domestic product. In general, this is okay “he stated.

Yet, against market forecasts for a 2.69% increase, Taiwan’s CPI for Jan increased by 3.04% year over year. According to Yang, inflation will continue to be higher in the 1st quarter and begin to decline from the 2nd quarter.

Rapid interest rate increases, according to Yang, are “not suitable” because of the significant effects.