TAIPEI, March 16: Taiwan's central bank is expected to hold its policy interest rate steady, maintaining the benchmark at 2% through at least mid-2027, according to economists.
The decision follows robust economic performance, driven by surging global demand for semiconductors from companies like TSMC, the world’s largest contract chipmaker. The economy grew 8.68% in 2025-the fastest in 15 years-and is projected to expand 7.7% in 2026.
Inflation remains under control, with consumer prices rising 1.75% in February-just above forecasts but still below the central bank’s 2% warning threshold for the 10th consecutive month.
Analysts warn that prolonged Middle East conflict could spark stagflation risks if energy prices surge, but no such shift is evident yet.
The central bank will release updated growth and inflation forecasts on Thursday.