TAIPEI, May 29 (Reuters) – Taiwan’s central bank will take “timely” measures to ensure financial stability in the face of uncertainty over U.S. tariffs, weakness in the Chinese economy and geopolitical conflict, it said on Friday.
• In its annual financial stability report, the central bank said the uncertainty could adversely affect global economic development and pose risks to Taiwan’s own financial stability.
• The bank will closely monitor the potential impacts of these developments on Taiwan’s economy and financial sector, and will take “timely and appropriate response measures to promote domestic financial stability,” it said.
• The bank noted that it has kept interest rates unchanged and has continued to adopt a flexible exchange rate policy to promote financial stability.
• Taiwan’s tech-driven economy is expected to grow at its fastest pace in 16 years in 2026, the government statistics agency said on Friday, thanks to booming demand for artificial intelligence-related technologies.
• Taiwan plays an essential role in the global AI supply chain for companies like Nvidia and Apple, led by the world’s largest contract chipmaker, Taiwan Semiconductor Manufacturing Co.
• Taiwan’s stock market is also at a historic high thanks to the AI boom.
(Reporting by Ben Blanchard and Liang-sa LohEditing by Tomasz Janowski)