The Central Bank of the Republic of China (Taiwan) held the discount rate at 2%, with secured-loan refinancing and temporary accommodation rates also unchanged, citing contained inflation and solid economic growth while maintaining a prudent stance toward global uncertainty and the Middle East conflict. It has kept the discount rate unchanged at every quarterly decision since September 2025. The central bank continued to manage liquidity through open market operations, with banking system liquidity remaining ample. It raised its 2026 GDP growth forecast to 11.48%, supported by strong artificial intelligence-related exports and investment, and projected growth of 5.82% in 2027. It forecast consumer price index inflation at 2.03% in 2026 before slowing to 1.83% in 2027. The central bank also eased selective credit controls effective September 18, raising the loan-to-value cap for a natural person’s second housing loan from 60% to 70% as real estate credit concentration and speculative activity declined. It reiterated that the NT dollar exchange rate is market-determined but that it may counter disorderly movements. Elevated commodity prices and Middle East tensions sustained global inflation pressures, while AI investment supported growth. The central bank will monitor inflation, global monetary tightening, financial conditions and other risks, and adjust policy in a timely manner.
2026-09-17Central Bank of Taiwan
Central Bank of the Republic of China (Taiwan) Holds Discount Rate at 2%
The Central Bank of the Republic of China (Taiwan) held the discount rate at 2%, citing contained inflation, solid growth and global uncertainty, and raised its 2026 gross domestic product growth forecast to 11.48%. It also raised the loan-to-value cap for second housing loans to natural persons from 60% to 70%, effective September 18, as property credit concentration and speculative activity declined.