Taiwan Interest Rate

The Central Bank of the Republic of Taiwan kept its key discount rate unchanged at 2% during its September 2024 meeting, in line with market expectations. Policymakers stated that maintaining the current rate would support the steady development of both the overall economy and financial stability. From January to August 2024, consumer prices increased by an average of 2.32%, while core CPI grew at an annual rate of 1.97%. The Bank projected that inflation would ease slightly in the second half of the year, forecasting annual CPI growth at 2.16% and core CPI at 1.94%, both lower than the previous forecasts of 2.49% and 2.58%, respectively. Meanwhile, the Bank expected the economic growth rate to be 1.99% in the second half of the year and 3.82% for the full year, driven by robust export growth, a significant increase in capital equipment imports, and strong momentum in private investment and consumption, though slightly tempered by a higher comparison base from the previous period.