Monetary Policy Decision of the Board Meeting (2026 Q3)

Global economic and financial conditions Since the Board met in June this year, rising investment in artificial intelligence (AI) and related technologies has contributed to further expansion in global manufacturing activity and sustained and moderate growth in the global economy. Amid geopolitical tensions in the Middle East, international crude oil and other commodity prices have remained elevated and global inflationary pressures have persisted. From June onwards, the European Central Bank has implemented policy rate hikes twice, and the Bank of Japan has resumed raising policy rates. The U.S. Federal Reserve has pivoted toward a policy rate increase, while the People's Bank of China has maintained its loose monetary policy stance. In the meantime, market attention on the pace of monetary policy adjustments and fiscal soundness in major economies, as well as the profitability of AI-related investment, have induced greater volatility in global financial markets. Looking ahead, international institutions currently forecast that as the impact of the energy shock subsides, global economic growth is likely to rebound and global inflation is projected to decline next year. Neverthe...