Taiwan Central Bank Maintains Interest Rate at 2% Amid Economic Uncertainties

Taiwan's central bank maintained its benchmark interest rate at 2% for the fourth consecutive quarter, amid concerns over inflation and uncertainties related to U.S. trade policies, including potential tariffs on semiconductors. The decision aligns with economists' expectations and reflects the bank's commitment to economic stability in light of external risks. The central bank revised its 2025 GDP growth forecast slightly down to 3.05% and indicated that inflation could rise if utility prices increase. Analysts suggest that any rate cuts may be postponed until later next year, with Goldman Sachs predicting the first cut could occur in September. The current economic conditions are marked by low inflation rates, which eased to 1.58% in February after exceeding 2% for several months. Overall, the central bank's cautious stance highlights its focus on monitoring both domestic inflation and global economic factors.