TAIPEI (Reuters). Taiwan’s central bank was concerned about a rate increase now that could raise the currency. However, Yang Chin-long, the central bank governor, said Monday that the central bank will follow the global tightening trend next year.

The current benchmark interest rate of 1.125% is at its lowest level since March 2013.

The September minutes from the board’s last meeting showed that there were some concerns about inflation. They recommended raising rates.

Yang asked parliamentarians questions and expressed concern about the rate hike that would cause Taiwan to appreciate.

He said, “This area is a concern for us.” We need to be aware of rate adjustments in other countries.

Yang stated that Taiwan would “definitely follow” the global trend of tightening policy for next year.

Taiwan’s currency strength has been an issue for the government. It makes it harder to export vital goods, which is good news for growth. However, it can also increase the chance of being called a currency manipulator in the United States.

In December 1992, the United States officially labeled Taiwan a currency manipulator. In 2020, it was placed back on the monitor list.

In mid-December, the central bank will hold its quarterly rate-setting meeting.

Analysts predict that any rate hike will not be possible before the middle of next fiscal year and after the U.S. Federal Reserve raises rates.