Central bank leaves interest rates unchanged

Taipei, June 19 (CNA) The Central Bank of the Republic of China (Taiwan) on Thursday announced it has decided to leave key interest rates unchanged after a quarterly policymaking meeting.

The decision marked the fifth consecutive quarter the central bank has left interest rates unchanged as the market widely anticipated, in particular after the U.S. Federal Reserve made a similar decision overnight to maintain its monetary policy for the fourth policymaking meeting in a row.

After Thursday's decision, the local discount rate will stay at 2 percent -- which is still the highest in 15 years -- the rate on accommodations with collateral remains at 2.375 percent and the rate on accommodations without collateral is 4.250 percent.

Like the Fed, market analysts said, the central bank needs time to observe the potential impact resulting from the Trump administration's tariff policies.

Analysts said the market remains alert over a possible spike in inflation and a slower global economy caused by higher tariffs.

U.S. President Donald Trump first announced "reciprocal" tariffs on April 2 on countries with high trade surpluses with the United States. These included a 32 percent import duty on goods from Taiwan, though Trump announced a 90-day pause a week later to allow negotiations for a lower levy.

In addition, Trump has threatened to impose a tariff on semiconductors which serve as the backbone of Taiwan's exports.