The Central Bank of Taiwan kept its policy rate steady at 2% on Thursday, a decision that was anticipated due to ongoing concerns about inflation and uncertainty surrounding new U.S. trade tariffs.
This decision aligns with the predictions of 33 economists who participated in a poll, all of whom expected the rate to remain unchanged.
In addition, the central bank has made a slight downward adjustment to its 2025 economic growth estimate. The new forecast is set at 3.05%, a reduction from the previous projection of 3.13% made in December. In 2024, Taiwan’s economy experienced a growth of 4.59%.
The central bank released a report following its quarterly rate-setting meeting, indicating that Taiwan has so far experienced limited effects from the increased U.S. tariffs on several countries, including Canada, Mexico, and China.
The report further stated that Taiwan’s export momentum is expected to persist through the current year.
