Taiwan's CBC Keeps Rates Steady, Eyes on Foreign Flows

Taiwan's Central Bank (CBC) kept its policy rate at 2% for a tenth consecutive quarter, but its mildly hawkish tone sent a mixed signal to markets.

CBC raised its 2026 growth forecast to 11.48%, lifted inflation forecasts, and flagged sticky services inflation, but stopped short of signaling an imminent hike.

The near-term direction of the Taiwan dollar (TWD) will be driven more by foreign equity flows, tech sentiment, and the broader US dollar move than policy, according to OCBC strategist Christopher Wong.