The Central Bank of Taiwan kept its discount rate, the rate on refinancing of secured loans and the rate on temporary accommodations unchanged in its 2026 Q2 board meeting at 2%, 2.375% and 4.25%, respectively, saying a hold would help sustain sound economic and financial development as domestic inflation is projected to remain moderate and the economy to post solid growth, while uncertainty around the global outlook and the Middle East conflict could affect domestic prices and activity. Domestic demand and exports linked to artificial intelligence and other emerging technologies lifted first-quarter performance above expectations, and the central bank raised its full-year GDP growth forecast to 9.45%. For the first five months of the year, CPI inflation averaged 1.52% and core CPI 1.96%; for the year as a whole, the central bank revised its forecasts slightly higher as import prices rose and services inflation turned up, though government energy price stabilization measures were expected to limit the impact. Market rates drifted higher in recent months but liquidity remained ample, while brisk equity trading led to a sharp increase in borrowing for securities investment, prompting the central bank to urge banks to watch credit expansion and risk management. The NT dollar exchange rate is determined in principle by market forces, though the central bank said it would step in if irregular forces or seasonal factors caused excess volatility or disorderly moves. Globally, it cit
Central Bank of Taiwan2026-06-18
Central Bank of Taiwan Holds Discount Rate at 2%
The Central Bank of Taiwan kept its discount rate, the rate on refinancing of secured loans and the rate on temporary accommodations unchanged at 2%, 2.375% and 4.25% at its 2026 Q2 board meeting, saying the stance would support sound economic and financial development as inflation remains moderate and growth solid despite global uncertainty and Middle East tensions. It raised its 2026 GDP growth forecast to 9.45%, slightly increased its inflation forecasts after January to May CPI of 1.52% and core CPI of 1.96%, and said it would adjust policy as needed while monitoring securities-related credit growth, real estate lending controls and excess New Taiwan dollar volatility.