Taiwan's central bank retained its key interest rate, as widely expected, on Thursday and raised its growth outlook on strong demand for AI and other technology applications. The central bank board unanimously decided to maintain the key discount rate at 2.0 percent.
The rate on refinancing of secured loans and the rate on temporary accommodations were unchanged at 2.375 percent and 4.25 percent, respectively.
The bank today raised its economic growth outlook for 2025 to 7.31 percent from 4.55 percent estimated previously as the economy logged stronger-than-expected growth in the first three quarters. Strong demand for AI and other emerging technology applications continued to underpin growth.
The growth outlook for the next year was lifted to 3.67 percent from 2.68 percent.
The bank expects inflation to ease to 1.66 percent this year, which was down from 1.75 percent projected in September. Similarly, core inflation forecast was lowered to 1.65 percent from 1.67 percent.
Both CPI and core inflation is estimated at 1.63 percent next year.
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December 19, 2025 15:10 ET U.S. inflation data and interest rate decisions by major central banks were the highlights of this busy week for economics news flow. Employment data and survey results on the housing markets also gained attention in the U.S. In Europe, the European Central Bank and Bank of England announced their policy decisions and macroeconomic projections.