Taipei: The Central Bank of the Republic of China (Taiwan) is anticipated to keep its key interest rates unchanged during its quarterly policymaking meeting on March 20. This decision comes as the local economy grapples with uncertainties stemming from a tariff war initiated by the Trump administration, as per economists. According to Focus Taiwan, Wu Meng-tao, head of the sixth research division at the Taiwan Institute of Economic Research (TIER), suggested that the central bank is not likely to prioritize measures aimed at stabilizing consumer price fluctuations at this time. Instead, the focus is expected to be on U.S. President Donald Trump's tariff threats, which could have significant implications for global financial markets. Wu emphasized the importance of the central bank addressing potential future uncertainties during their discussions on monetary policy. Since taking office on January 20, President Trump has signed executive orders to impose tariffs on imports from China, Canada, and Mexico, and has threatened to implement "reciprocal tariffs" without exceptions. Trump has also accused Taiwan of having taken the chip business away from the United States, which could lead to potential tariffs on semiconductors affecting the country. In December, the central bank left interest rates unchanged for the third consecutive quarter, with the discount rate remaining at 2 percent-the highest in 15 years-the rate on accommodations with collateral at 2.375 percent, and the rate on accommodations without collateral at 4.250 percent. Maintaining its current monetary policy would provide the central bank with more flexibility to address possible future volatility in financial markets, particularly as Trump's tariff hikes could trigger retaliatory measures from other countries, Wu explained. Wu further noted that Trump's imposition of reciprocal tariffs could begin as early as April, with Taiwan unlikely to be exempt. He stressed that the central bank should remain stable and prepare for potential global tariff wa rs. Several major financial institutions have projected Taiwan's consumer price index (CPI) to grow by less than 2 percent, below the central bank's alert threshold, with the country's GDP growth expected to reach 3 percent this year, suggesting no immediate need for interest rate cuts. In December, the central bank forecasted a local CPI growth of 1.89 percent and core CPI growth of 1.79 percent for 2025, alongside a projected GDP growth of 3.13 percent. However, Taiwan Power Co. (Taipower) may face pressure to increase electricity rates due to significant accumulated losses and budget cuts by the Legislative Yuan, potentially driving inflation up, Wu added. An increase in electricity rates could pressure the central bank to raise interest rates. Dachrahn Wu, Director of the National Central University Research Center for Taiwan Economic Development, indicated that while Taipower's rate hikes could elevate inflation, a tariff war could negatively impact global trade, reduce commodity prices, and weaken th e world economy, potentially offsetting inflationary pressures from higher power rates. He concurred with Wu Meng-tao that the central bank is unlikely to focus on curbing inflation at this time and is expected to leave key interest rates unchanged on March 20. In light of Trump's tariff hikes, the central bank may prioritize economic stimulation over inflation control.