Taiwan's central bank has issued a clear warning: it stands ready to act as external risks mount. The threats of new US tariffs and ongoing economic weakness in China are putting unprecedented pressure on Taiwan's trade-dependent economy Reuters.
Officials acknowledge that Taiwan's economic growth for 2025 is now projected to be slower than previous forecasts. The dual challenges of a potential trade war with the US and reduced demand from China, its two largest trading partners, have heightened uncertainty US News.
Governor Yang Chin-long emphasized that the bank will take “timely and appropriate measures” to ensure financial stability if needed. The central bank has also reiterated its willingness to intervene in foreign exchange markets to stabilize the Taiwan dollar should volatility threaten economic fundamentals Reuters.
These moves come as Taiwan faces its most complex external environment in years. US authorities and Taiwan have renewed their commitment to transparency and close consultation on macroeconomic and currency policy CW. Meanwhile, analysts note that the central bank is maintaining a "wait-and-see" approach, leaving rates unchanged for now despite mounting global uncertainty FocusEconomics.
The coming months will test Taiwan's ability to navigate external shocks. The central bank's next moves—and their timing—may be critical for economic stability.