Taiwan's central bank held its policy interest rate steady on Thursday as expected, given the island's tech-driven export-dependent economy remains strong so far even as new tariffs in the United States take effect, and inflation is under control.
The central bank left the benchmark discount rate (TWINTR=ECI) at 2%, in a unanimous decision and in line with predictions from a Reuters poll where 30 of 32 economists forecast no change.
The central bank raised its 2025 estimate for economic growth to 4.55%, from a previous forecast of 3.05% given in June, but said it saw it slowing to 2.68% next year.
Taiwan's economy grew 4.59% in 2024, buoyed by robust exports, including high demand for artificial intelligence applications from companies such as Nvidia (NVDA.O).
Goods from Taiwan are subject to a 20% U.S. tariff, as part of President Donald Trump's sweeping measures targeting imports from across the globe, though Taipei remains in talks with Washington to get a better deal.
The central bank trimmed its consumer price index forecast for this year to 1.75%, down from its June forecast of 1.81%.
Taiwan's rate decision came a day after the U.S. Federal Reserve, goaded by the risk of rising unemployment, reduced interest rates for the first time since December.
