Taiwan Central Bank Keeps Interest Rate Unchanged

Post by : Bianca Suleiman

The Central Bank of the Republic of China (Taiwan) has decided to keep its key interest rates the same. This decision was made on Thursday during their regular quarterly meeting, as reported by Focus Taiwan.

This is now the fifth time in a row that the central bank has chosen not to change interest rates. Many people in the financial world were expecting this move. It comes just after the U.S. Federal Reserve also decided to keep its interest rates unchanged. The Fed has now made this same decision for four meetings in a row.

Other countries, like the United Arab Emirates (UAE), also chose to keep their interest rates steady after their recent policymaking meetings. These decisions show that many countries are being careful and want to wait and watch before making any changes.

For Taiwan, this means:

• The discount rate stays at 2%, which is the highest it has been in 15 years.

• The rate on loans with collateral remains 2.375%.

• The rate on loans without collateral stays at 4.250%.

Market experts believe that Taiwan’s central bank, just like the U.S. Fed, wants to take more time to understand how the tariff policies announced by former U.S. President Donald Trump will affect the global economy.

On April 2, Trump introduced new import tariffs, especially on countries that have large trade surpluses with the U.S., including Taiwan. These tariffs include a 32% duty on goods from Taiwan. However, a 90-day pause was later announced by Trump to give time for possible talks and changes to the tariffs.

There is also worry that Trump may add tariffs on semiconductors, which are very important to Taiwan’s exports. If this happens, it could seriously affect Taiwan’s economy.

Analysts say they are keeping a close watch. They are worried that these tariffs could lead to higher prices (inflation) and a slowdown in the global economy. So, for now, Taiwan’s central bank has decided it is better to stay cautious and not change rates.