TAIPEI :Taiwan’s central bank kept its policy rate unchanged on Thursday, as widely expected, given the island’s robust tech-driven economy and moderating inflation, and maintained its economic growth outlook for the year.
The central bank left the benchmark discount rate at 2 per cent, in a unanimous decision and in line with predictions from a Reuters poll where 29 of 30 economists forecast no change.
The central bank maintained its 2025 estimate for economic growth at 3.05 per cent.
Taiwan’s economy grew 4.59 per cent in 2024, buoyed by robust exports, including high demand for artificial intelligence applications from companies like Nvidia.
The central bank trimmed its consumer price index (CPI) forecast for this year to 1.81 per cent, down from its March forecast of 1.89 per cent.
Taiwan’s rate decision came a day after the U.S. Federal Reserve held rates steady, as expected, and retained projections for two quarter-point rate cuts this
