The Central Bank of the Republic of China (Taiwan) opted Thursday to keep its main policy rate unchanged at 2.00%, with the monetary policy committee members voting unanimously in favor of maintaining the status quo.
The decision matched the expectations of all 29 analysts polled by LSEG ahead of the meeting. Bank officials signaled that policy settings are expected to remain steady for the remainder of 2026 despite increases in global energy prices tied to conflict in the Middle East.
Inflation in Taiwan was recorded at 1.3% year-on-year across the first two months of 2026 prior to the recent uptick in global energy costs. Officials said the government’s price cap measures will slow how much of those higher global energy costs are passed through to domestic energy prices and, by extension, to headline inflation.
The central bank revised up its inflation projection for 2026, raising the estimate from 1.6% to 1.8%. Despite this upward revision, policymakers indicated that inflation is not expected to become a policy concern, and they forecast that overall economic growth will remain stable even with elevated energy prices tied to the geopolitical situation abroad.
In its statement, the bank said the combination of the government’s efforts to limit pass-through effects from higher energy costs and the current economic outlook support a policy path with rates held steady through the remainder of the year.
Context and implications
The unanimous vote and alignment with the full set of market forecasts underline a consensus view among both the bank and external analysts that the current policy stance is appropriate given the balance of inflationary pressures and growth prospects. Officials flagged higher global energy prices as a concern but emphasized the mitigating role of domestic policy measures.