Taiwan’s macro story remains steady, but not static. The central bank is holding the line, inflation is still falling and job market strength is firming into a structural asset. But fresh warnings from the CBC board show that policymakers are not complacent. The external environment remains noisy, and while Taiwan continues to balance well, new signals suggest they're bracing for a bumpier second half.
Monetary Policy
The Central Bank of the Republic of China (CBC) has kept the benchmark discount rate unchanged at 2%, just as we anticipated in April, May, and June. This steady hand approach remains anchored in confidence that inflation will keep moderating and that growth - particularly in semiconductors and AI-related sectors - will stay resilient without the need for fresh stimulus or tightening.
New signal from the July board minutes: The CBC reaffirmed this stance but flagged rising external risks. Specifically, it cited tariff pressure from the US and a cooling global trade enviro...
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