FX.co ★ Taiwan Interest Rate Unchanged as Expected

The Central Bank of Taiwan opted to keep its key discount rate steady at 2% during its March 2025 monetary policy meeting, a move that aligned with market predictions. This decision underscored the bank’s commitment to fostering economic and financial sector stability amid persisting uncertainties, including the implications of US trade policies. In its latest assessment, the central bank adjusted its economic growth projection for 2025 to 3.05%, marginally lower than its previous forecast of 3.08%. Additionally, the bank projected Taiwan's annual CPI and core CPI growth rates for the current year to be 1.89% and 1.79%, respectively, a reduction from last year's figures of 2.18% and 1.88%. The Central Bank of Taiwan reaffirmed its vigilance in monitoring domestic inflation trends, keeping a close watch on global economic developments, and pledged to modify its monetary policy as required.