FX.co ★ Taiwan Holds Rate at 2% as Expected

The Central Bank of the Republic of China (Taiwan), the country’s monetary authority, left its benchmark interest rate unchanged at 2% in its June 2026 decision, in line with the expectations of most market participants. This marks the ninth consecutive quarter that borrowing costs have been held at their highest level since 2008. The move stands in contrast to monetary authorities across Asia, many of which have begun raising rates as higher energy prices stemming from the war in Iran intensify inflationary pressures.

Inflation in Taiwan climbed above 2% in May for the first time in a year, breaching the central bank’s alert threshold. At the same time, the economy has been buoyed by surging demand in cutting-edge semiconductors and AI infrastructure products, prompting a sharp upgrade to the country’s export outlook. Authorities now project export growth of 40% for this year.