Taipei: The Central Bank of the Republic of China (Taiwan) announced on Thursday that it would maintain its key interest rates unchanged following the conclusion of its quarterly policymaking meeting. This decision marks the seventh consecutive quarter that the central bank has opted to keep rates steady.

According to Focus Taiwan, the central bank’s decision to maintain rates was largely anticipated by market analysts, despite the U.S. Federal Reserve’s recent rate cuts in its past three meetings. Taiwan’s discount rate remains at 2 percent, the highest it has been in 15 years. The rate on accommodations with collateral holds at 2.375 percent, and the rate on accommodations without collateral stands at 4.250 percent.

Economists, including Lin Chi-chao, chief economist at Cathay United Bank, argue that cutting rates in line with the Fed would be challenging given Taiwan’s robust economy and stable inflation. The Directorate General of Budget, Accounting and Statistics (DGBAS) projects Taiwan’s export-driven economy to grow by 7.37 percent in 2025, a significant upward revision from previous estimates, driven by strong global demand for artificial intelligence technologies.

The DGBAS also forecasts a consumer price index growth of 1.67 percent, which remains below the central bank’s 2 percent alert level. Economists suggest that the central bank may continue its current rate policy into the first half of 2026, monitoring global economic conditions closely.

Additionally, the central bank is prioritizing the movement of the Taiwan dollar against the U.S. dollar, as Taiwan’s strong economic performance could lead to upward pressure and volatility on the local currency amid the Fed’s ongoing rate cuts.