Global Pause: US, Taiwan and UAE keep interest rates unchanged
Taipei: The Central Bank of the Republic of China (Taiwan) on Thursday kept the key interest rates unchanged after a quarterly policymaking meeting, as reported by the Focus Taiwan.
The decision to keep rate cuts unchanged marked the fifth consecutive quarter the central bank has left interest rates unchanged, as the market widely anticipated.
This decision comes after the U.S. Federal Reserve made a similar decision overnight to maintain its monetary policy for the fourth policymaking meeting in a row.
Additionally, other leading major economies, such as the UAE, also held interest rates steady after their policymaking meetings.
Following Thursday's decision, the local discount rate will stay at 2 per cent, which is still the highest in 15 years -- the rate on accommodations with collateral remains at 2.375 per cent, and the rate on accommodations without collateral is 4.250 per cent.
"Like the Fed, market analysts said, the central bank needs time to observe the potential impact resulting from the Trump administration's tariff policies," Focus Taiwan added.
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 per cent 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.
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