TWD: Central bank to hold policy steady – DBS Bank

DBS Bank's Group Research expects Taiwan's central bank to maintain its policy rate at 2.00% throughout 2026. The report highlights that inflation is projected to remain below the central bank's comfort zone, with subdued price pressures reflecting stable economic conditions. The central bank is anticipated to gradually unwind liquidity support measures as economic growth outperforms expectations.

Taiwan monetary policy forecast

"With inflation staying below the central bank’s 1.5–2.0% comfort zone, there is no pressure for a shift toward rate hikes."

"We therefore maintain our forecast that the central bank will keep the policy rate at 2.00% throughout this year."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)