Taiwan Interest Rate

The Central Bank of Taiwan kept its key discount rate unchanged at 2% during its June 2025 meeting, in line with market expectations. The decision reflects ongoing global economic uncertainties, a stable domestic outlook, and continued easing of inflationary pressures. Taiwan’s economy outperformed expectations in the first half of 2025, supported by strong global demand for emerging technologies and early inventory stocking by foreign firms in anticipation of potential US tariff hikes. The central bank maintained its GDP growth forecast at 3.05% for 2025. Meanwhile, the inflation rate from January to May 2025 rose at an average annual rate of 2.04%, while core CPI increased by 1.65%. The central bank projects full-year CPI and core CPI growth at 1.81% and 1.69%, respectively—both lower than the 2024 figures of 2.18% and 1.88%. The Bank cautioned that inflation risks remain, citing commodity price swings, domestic service costs, and unpredictable weather as potential pressures.