Taiwan Central Bank Holds Rate as USD/TWD Hinges on Equity Flows

Taiwan's central bank has maintained its policy rate at 2% for a tenth consecutive quarter, adopting a mildly hawkish tone while increasing its growth forecast to 11.48% and inflation projections.

The decision did not signal an imminent rate hike, with the Taiwan dollar holding steady after post-FOMC US dollar strength.

Near-term USD/TWD movements are expected to be driven by foreign equity flows, tech sentiment, and the broader US dollar direction rather than monetary policy.