Central bank leaves interest rates unchanged for 6th straight quarter

Taipei, Sept. 18 (CNA) Taiwan's central bank left key interest rates unchanged Thursday after its quarterly policy meeting, even after a 25-basis-point cut by the U.S. Federal Reserve overnight.

It was the sixth consecutive quarter the Central Bank of the Republic of China (Taiwan) has held rates steady, as expected, at a time when the economy faces uncertainties from U.S. tariff policies.

Following Thursday's decision, the local discount rate remains at 2.00 percent -- the highest in 15 years -- while the rates on accommodations with and without collateral stay at 2.375 percent and 4.250 percent, respectively.

Taiwan has been subject to a 20 percent tariff by the Trump administration, with negotiations ongoing to potentially reduce the levy.

In addition, a Section 232 investigation launched in April under the U.S. Trade Expansion Act could lead to tariffs on semiconductors, creating further uncertainty for Taiwan's tech sector.

Economists said the central bank's decision aims to preserve flexibility to cushion the economy from tariff-related shocks.

While U.S. tariffs have pressured some traditional industries, Taiwan's technology sector has remained resilient, continuing to expand investment to meet global demand. That strength prompted the Directorate General of Budget, Accounting and Statistics to raise its 2025 GDP growth forecast to 4.45 percent from 3.10 percent.

Economists said the strong economic growth also made a rate cut unlikely for now.