Taiwan's central bank sharply raised its 2025 economic growth forecast to 7.28% from 3.67%, driven by surging tech exports fueled by global demand for AI semiconductors. The bank cited strong export performance linked to companies like Nvidia as key to the revision.
Despite the robust growth, inflation expectations rose to 1.8% from 1.63%, attributed to disruptions from the Middle East conflict and U.S. trade policy. The bank held its benchmark discount rate unchanged at 2%, a move widely anticipated by economists.
Taiwan's economy expanded 8.68% in 2024 - its fastest pace in 15 years - as AI-driven semiconductor demand surged globally.
The decision follows the U.S. Federal Reserve's similar hold on rates, with both institutions signaling cautious optimism amid global uncertainty.