Taiwan Central Bank’s 364-Day Certificate Rate Hits Eight-Month High, Dashing Rate-Cut Hopes

Taiwan’s central bank auctions 364-day certificates of deposit each month to absorb excess liquidity from the financial system. The yield and bidding activity also reflect banks’ liquidity levels and market expectations for monetary policy. In 2026, the Middle East conflict has driven up oil prices and inflation risks, prompting major central banks to turn more hawkish and narrowing Taiwan’s scope for a near-term rate cut.

On April 30, 2026, the central bank auctioned NT$140 billion of 364-day certificates of deposit. The weighted average yield rose 5.6 basis points from March to 1.341%, its highest in nearly eight months. Bids totaled NT$154.59 billion, producing a bid-to-cover ratio of just 1.1, the lowest in nearly 24 months. The certificates are due to be issued on May 4, and the market is no longer ruling out a rate increase.