Central Banks

Central banks are responsible for monetary policy, financial stability, exchange-rate management and the operation of payment systems. Taiwan's central bank recently kept its policy rate unchanged and raised its economic growth forecast on stronger AI demand, while also monitoring exchange-rate volatility, yield-curve inversion and the K-shaped economy. It continues to advance work on digital currency and stablecoin regulation. These developments affect funding costs, the New Taiwan dollar exchange rate, industry conditions and household asset allocation.