Taiwan Seen Holding Policy Rate Even as Inflation Speeds Up (opens original article in a new tab)

Taiwan's central bank is expected to maintain its benchmark interest rate at 2% for the ninth straight quarter despite rising inflation and a strong economy, with some economists predicting potential rate hikes due to robust tech exports.

• Taiwan's central bank is expected to keep its benchmark interest rate unchanged for the ninth consecutive quarter
• Inflation in Taiwan has exceeded the central bank's alert threshold of 2% for the first time in a year
• Some economists predict a rate hike due to strong tech exports, while others expect a hold due to economic imbalances
• The central bank will update its 2026 economic growth forecast on Thursday
• Taiwan's economy is growing strongly due to high demand for tech products like semiconductors