The Central Bank of the Republic of China (Taiwan) left its benchmark interest rate unchanged at 2% at its September 2026 meeting, keeping borrowing costs at their highest level since 2008. Headline inflation remained above the Bank’s 2% target for a fourth consecutive month, although it eased to 2.04% in August, largely reflecting the impact of higher international oil prices.
At the same time, economic growth has remained robust. The economy posted its strongest first-half performance since 1976, driven by the AI boom and solid export growth, particularly in semiconductors. Growth forecasts were revised up to 9.09% for the second half of 2026 and 11.48% for the full year, supported by sustained demand for emerging technologies. The inflation outlook was also raised, to 2.03% for 2026, before moderating to 1.83% in 2027 as the effects of the oil price surge are expected to fade.
