Taipei: The Central Bank of the Republic of China (Taiwan) announced on Thursday that it will keep its key interest rates unchanged, following the conclusion of its quarterly policymaking meeting. This marks the eighth consecutive quarter that the central bank has opted to maintain its current monetary policy stance, a decision that was widely expected by market analysts, especially after the U.S. Federal Reserve also left interest rates unchanged the previous night.

According to Focus Taiwan, Taiwan's discount rate remains at 2 percent, the highest it has been in 15 years. Additionally, the rate on accommodations with collateral is stable at 2.375 percent, while the rate on accommodations without collateral holds at 4.250 percent. Cathay United Bank's chief economist, Lin Chi-chao, noted that the central bank requires more time to assess the situation, particularly as Middle Eastern tensions have driven international crude oil prices above US$100 per barrel.

Fed Chair Jerome Powell remarked that the ongoing conflict involving the U.S., Israel, and Iran has introduced economic uncertainties following the American central bank's recent two-day policymaking meeting. Local economists have highlighted Taiwan's strong economic performance, driven by robust exports amidst the current AI boom, as a reason for the central bank's decision to maintain interest rates at their current levels.

In a related development, the Directorate General of Budget, Accounting and Statistics revised its forecast for Taiwan's GDP growth in February, raising it to 7.71 percent from a previous estimate of 3.54 percent made in November.