CBC implies that the interest rates may not change in a short-term

Chin-Long Yang, the current Governor of the Central Bank of the Republic of China (CBC), said today on March 7th that since CBC did not raise the interest rates at the end of last year, if the economic data in 1Q19 was similar to the data in 4Q18.

Yang said "there is no reason to raise interest rates or cut interest rates", implying that CBC may keep interest rates unchanged in a short term. Yang also mentioned that there is “no way” that the CPI to reach 2%.

According to the report, Yang told that the global economic growth momentum is weakening, the inflation becomes mild, the ECB may launch quantitative easing measures to stimulate the economy, and the global economic is facing many risks. The market believed that the report implies that CBC may have no significant interest rate hikes in a short term.