Taiwan’s financial system has remained relatively steady through April. The central bank has held the line on policy while nudging down growth expectations. The government’s focus on real estate credit and financial market stability has continued to shape the regulatory tone. The broader economic outlook remains healthy but not without its risks - especially as global trade tensions and tariff talk heat up again.
Monetary Policy
No surprises from the CBC. The central bank held rates steady for a fourth straight quarter at its March meeting - keeping the benchmark discount rate at 2.00%, with secured and unsecured lending rates unchanged at 2.375% and 4.25%. To us this signals a measured approach in the face of lingering inflation especially in the face of renewed global uncertainty. Inflation is still tracking lower - expected to dip below 2% this year - giving the CBC room to hold steady on rates. We expect the CBC to revise its 4.25% growth forecast upward, with AI, chips and other n...
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