Taipei: The local central bank on Thursday decided to leave its key interest rates unchanged after concluding its quarterly policymaking meeting. This marks the ninth consecutive quarter in which the bank has maintained interest rates at the same level.

According to Focus Taiwan, the decision came as no surprise to market observers, especially following the U.S. Federal Reserve's recent decision to keep interest rates steady. Despite the Fed's consistent stance, it has suggested the possibility of a rate hike later this year, a move that is being closely watched by global markets.

Taiwan's discount rate will continue to hold at 2 percent, the highest in 15 years, while the rate on accommodations with collateral remains at 2.375 percent, and the rate on accommodations without collateral stays at 4.250 percent. Analysts have indicated that there is no immediate need for the central bank to raise rates, given that Taiwan's inflation is being managed through government price stabilization measures. These measures have been enacted to mitigate the impact of rising crude prices, which are influenced by geopolitical tensions in the Middle East.

Despite a rise in the May consumer price index (CPI) to 2.20 percent due to increased energy prices, the average CPI growth from January to May was 1.52 percent, which is still below the central bank's 2 percent alert threshold. Analysts suggest that an impending peace agreement between the United States and Iran could lead to a decrease in crude prices, potentially reducing inflationary pressures and allowing the central bank more flexibility.

According to analysts, the central bank is exercising caution and is unlikely to adjust its monetary policy ahead of other major banks, particularly the Fed. The bank appears to be waiting to gather more data before making any significant policy changes.