Key facts
- Taiwan's central bank maintained its benchmark interest rate at 2% for the ninth consecutive quarter.
- The bank raised its economic growth forecast for the year to 9.45% from 7.25%.
- Inflationary pressures were noted as a concern, with the CPI forecast for the year raised to 1.91%.
- The decision was not unanimous, with two board members citing inflation risks.
- Last month's inflation reached 2.2%, exceeding the central bank's 2% warning line.
Taiwan's central bank held its benchmark interest rate steady at 2% for the ninth consecutive quarter, a decision that was not unanimous due to rising inflation concerns. The bank cited strong demand for semiconductors used in artificial intelligence applications, which has boosted economic growth and led to an upward revision of its economic growth forecast to 9.45% from 7.25%. Despite the growth, Governor Yang Chin-long noted that several board members highlighted the need to monitor inflationary pressures closely, suggesting a slightly more hawkish stance might be necessary. The central bank also raised its consumer price index forecast for the year to 1.91% from 1.8%, as inflation hit 2.2% last month, exceeding the bank's 2% warning line.