The Central Bank of the Republic of China (Taiwan) left its policy stance unchanged at the 19 March 2026 Board meeting, holding the discount rate, secured-loan refinancing rate and temporary accommodation rate at 2.00%, 2.375% and 4.25%, respectively, as moderate inflation and an upgraded outlook for solid growth were set against elevated global uncertainty from the Middle East conflict and shifting U.S. trade policies. The hold prolongs a steady path that has kept the discount rate at 2.00% since at least March 2025. Market implementation remains smooth: banking-system excess reserves averaged about TWD 56 bn in January–February and money-market rates stayed within a narrow band amid 5.27 % M2 and 7.04 % bank credit growth. The Bank lifted its 2026 GDP growth forecast to 7.28% on AI-driven export and investment strength, while nudging up full-year CPI and core CPI projections to 1.80% and 1.75% after respective January–February prints of 1.23% and 1.93%. Externally, authorities noted NT-dollar trading remains market-determined but pledged intervention to smooth heightened FX volatility linked to surging oil prices and geopolitical risks. Concurrently, the Board eased macro-prudential policy by raising the loan-to-value ceiling on second home mortgages for individuals to 60%, citing cooling real-estate credit growth and lower housing-price pressures. Looking ahead, the central bank will track geopolitical developments, U.S. policy shifts, major-economy rate paths, AI industry
Central Bank of Taiwan 2026-03-19
Taiwan central bank leaves policy rates unchanged, holding discount rate at 2.00%
Central Bank of the Republic of China (Taiwan) kept its discount rate at 2.00% (secured-loan refinancing 2.375%, temporary accommodation 4.25%) while projecting 2026 GDP growth of 7.28% and CPI of 1.80% amid geopolitical and trade uncertainties. The Board also relaxed macro-prudential curbs by raising the loan-to-value ceiling on second-home mortgages to 60%.