Taiwan Interest Rate

The Central Bank of Taiwan held its key discount rate at 2% during its June 2024 meeting, after an unexpected hike during its last policy meeting, aligning with market expectations. Policymakers noted that the current stance is appropriate to help the overall economic and financial development to be stable. From January to May this year, consumer prices grew at an average annual rate of 2.24%, while the core CPI grew at an annual rate of 2.06%, showing a gradual decline. The Bank expects inflation to slowly decrease in the second half of the year, with annual CPI and core CPI growth forecasted at 2.12% and 2.00%, respectively, lower than last year's 2.49% and 2.58%. Meanwhile, the economy is also expected to grow steadily in the second quarter, but the second-half economic growth will be slower, with a full-year forecast of 3.77%, up from March's projection of 3.22%.