President Tsai Ing-wen favors choosing monetary policy maker Yang Chin-long to become the next chief of Taiwan’s central bank, according to a person familiar with the matter.
Yang, currently the central bank’s deputy governor, is set to succeed Perng Fai-nan, 79, when he steps down in February, the person said. After two decades in the position, Perng is one of the world’s longest-serving central bank governors. Presidential Office spokesman Lin Ho-ming declined to confirm Yang’s appointment, saying the government would announce who the new governor will be as soon as it has been decided.
Key points about Yang Chin-long
- Areas of expertise: macroeconomics, foreign exchange, banking
- Career path: Joined central bank in 1989
- Education: PhD in economics from University of Birmingham, U.K.
The appointment is in line with economist expectations. Yang was the leading contender for the post, according to a recent Bloomberg survey of economists. With growth forecast to hold up in 2018 as inflation remains moderate, a leadership transition isn’t seen as reshaping the policy outlook. Economists forecast modest tightening of borrowing costs later this year.
The president cited Yang’s strong knowledge of the economy and experience of currency markets as reasons for her choice, the person said. The new governor’s five-year term would normally end February 2023, with no limit on consecutive terms.
Perng began his tenure as central bank chief by defending the Taiwan dollar during the Asian financial crisis, and he has long prioritized stability. Economic output has nearly doubled under his two decades steering policy. The transparency of monetary policy also improved under his governance — the central bank has started releasing quarterly meeting minutes.
The incoming governor may face a more benign situation than Perng did when he arrived, with export prospects bright amid robust global growth. Still, the central bank must address challenges including capital outflows and currency-depreciation pressure as major economies normalize monetary policy. The benchmark interest rate has been unchanged at 1.375 percent since June 2016.
— With assistance by Yinan Zhao