The Central Bank is set to hold its second-quarter board meeting on the 19th, amid uncertainties surrounding U.S. tariffs that may bolster the appreciation of the New Taiwan Dollar. The challenges for easing regulations on the housing market have consequently increased. Analysts expect interest rates to remain stable, yet volatility of the New Taiwan Dollar could trigger capital inflows, complicating efforts to cool down the overheated housing market.

Following the U.S. announcement of a 32% high tariff on Taiwan on April 2, the New Taiwan Dollar surged, prompting the Central Bank to intervene in market sentiments. The situation has become increasingly complex, according to Lin Chih-chao, Chief Economist at Cathay United Bank, as the outcomes of negotiations on the tariffs are yet to manifest over the next 90 days. This uncertainty could impact economic performance in the third quarter, leading to minimal likelihood of any changes in the Central Bank's interest rate policy.

Financial experts believe that U.S. tariffs will directly affect Taiwan's economic outlook, and the Central Bank must closely assess the effects on exports and the housing market. In May, transaction volumes in the six major cities hit a historic low, reflecting the subdued state of the housing market this year. Should the New Taiwan Dollar appreciate further, the risks to the housing market could escalate, forcing the Central Bank to adopt a more cautious approach. Furthermore, the high outstanding balance of real estate loans remains a significant factor in the Central Bank's current policy considerations.