Taipei: Following a quarterly policymaking meeting, the Central Bank of the Republic of China (Taiwan) maintained the key interest rates unchanged on Thursday, according to Focus Taiwan.
The decision to maintain rate cuts unchanged was the fifth straight quarter in which the central bank left interest rates unchanged, as the market widely expected.
This decision follows the U. S. Federal Reserve's overnight announcement that it will continue its monetary policy for the fourth consecutive meeting.
Additionally, other prominent major economies, such as the UAE, maintained interest rates stable following their policy meetings.
Following Thursday's meeting, the local discount rate will remain at 2%, the highest in 15 years. The rate on accommodations with collateral remains at 2. 375%, while the rate on accommodations without collateral is 4. 250%.
Like the Fed, market analysts said, the central bank needs time to assess the possible impact of the Trump administration's tariff measures, Focus Taiwan reported.
Analysts stated that the market is still concerned about a potential increase in inflation and a slower global economy due to higher tariffs.
U. S. President Donald Trump first disclosed reciprocal tariffs on April 2 against nations with significant trade surpluses with the United States. These included a 32% import tax on items from Taiwan, however Trump announced a 90-day break one week later to enable negotiations for a smaller levy.
Furthermore, Trump has threatened to levy a tax on semiconductors, which are the foundation of Taiwan's exports.
