TAIPEI - Taiwan’s central bank held its benchmark discount rate at 2%, as unanimously expected, citing robust tech-driven exports. It upgraded 2026 GDP growth to 7.28%, more than doubling its December forecast of 3.67%.
The revision follows 2025’s 15-year high of 8.68% growth, fueled by soaring global demand for AI semiconductors, particularly from firms like Nvidia.
The bank also nudged up its 2026 inflation forecast to 1.8%, from 1.63%. The move follows the U.S. Federal Reserve’s decision to hold rates steady amid revised inflation projections.