Taiwan Central Bank Seen Holding Rates for Eighth Straight Meeting in Q1

Taiwan's central bank sets policy rates at meetings of its board of directors and supervisors, influencing mortgage rates, corporate financing and New Taiwan dollar funding costs. A hold this quarter would mark the eighth consecutive meeting with no rate change. Despite strong export momentum, geopolitical tensions, tariff uncertainty and domestic inflationary pressure are likely to keep the central bank's policy stance neutral with a tightening bias.

Financial industry respondents unanimously expect the central bank to stand pat at its first-quarter board meeting on March 19, neither raising nor cutting policy rates. Governor Yang Chin-long also said the monetary policy stance is moving toward tightening and that the second quarter will be a key period for assessment. Subsequent decisions will depend on changes in prices, exports and external risks.