TAIPEI: Taiwan’s central bank has flagged the need for cautious interest rate decisions in light of heightened global uncertainties, particularly the potential fallout from US import tariffs, minutes from its March board meeting show.
The central bank unanimously opted to hold its benchmark discount rate at 2% during the March meeting, citing persistent inflation risks and the unpredictable nature of US trade policy.
A board member noted that with Taiwan’s domestic growth still resilient and the outlook clouded by “elevated uncertainty” from Washington, there was no compelling reason to adjust rates aggressively in either direction.
Another member labelled former US President Donald Trump’s tariff actions as “erratic,” supporting the case for a more measured monetary approach.
With inflation rising to 2.29% in March—a seven-month high and above the central bank’s 2% warning threshold—a third member cautioned that further rate tightening might be necessary if price pressures persist.
The central bank’s next policy meeting is scheduled for 19 June.
–REUTERES
