Taiwan’s Central Bank (CBC) has reduced its outstanding certificates of deposit by over NT$1.56 trillion, bringing the balance from NT$7.42 trillion to NT$5.86 trillion. This 21% decline in under nine months marks a major operational shift from net liquidity absorption to net injections into the banking system. In June 2026, the CBC cut monthly auctions for 364-day CDs from NT$140 billion to NT$120 billion, the first reduction in four years. Policy rates remain unchanged with the discount rate at 2%, secured refinancing at 2.375%, and temporary accommodations at 4.25%. These adjustments aim to support growing financing needs in the AI and electronics sectors while preserving monetary stability.
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