Taiwan Interest Rate

The Central Bank of the Republic of Taiwan held its key discount rate steady at 2% during its December 2024 meeting, aligning with market expectations. The board believed that maintaining the current rate would support the steady development of the overall economy and ensure financial stability. The central bank raised its 2024 GDP growth forecast to 4.25% from 3.82% in September. For 2025, the bank now expects growth of 3.13%, slightly higher than the previous prediction of 3.08%. However, it cautioned that potential risks could emerge next year due to uncertainties surrounding trade policies from the incoming Trump administration in the US. Additionally, the bank also adjusted its inflation forecast for this year to 2.18% from a previous estimate of 2.16%, projecting it would drop to 1.89% next year.