Latest bank decision: At its meeting on 15 May, the Central Bank decided to lower the target for the overnight...
Discount Rate in Taiwan
The Discount Rate ended 2022 at 1.75%, up from the 1.13% end-2021 value and down from the reading of 1.88% a decade earlier. For reference, the average Discount Rate in Asia-Pacific was 3.70% at end-2022. For more interest rate information, visit our dedicated page.
Taiwan Interest Rate Chart
Note: This chart displays Policy Interest Rate (%) for Taiwan from 2018 to 2024.
Source: Macrobond.
Taiwan Interest Rate Data
| 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|
| Discount Rate (%, eop) | 1.13 | 1.13 | 1.75 | 1.88 | 2.00 |
| 31-90 Day CP Rate (%, eop) | 0.48 | 0.48 | 1.36 | 1.49 | 1.68 |
| 10-Year Bond Yield (%, eop) | 0.32 | 0.74 | 1.28 | 1.21 | 1.63 |
Central Bank leaves rates unchanged in March
Latest bank decision: At its meeting on 20 March, Taiwan’s Central Bank decided to keep the discount rate unchanged at 2.00%.
Monetary policy drivers: Rate cuts were not warranted, given that the economy is performing well as the export sector rides the global AI boom. On the flipside, rate hikes were unnecessary given that inflation has been moderate at close to 2.0% in recent months, and should remain close to that level in 2025 as a whole according to the Bank.
No major deviations in monetary policy expected: The Central Bank did not provide specific forward guidance on the future direction of interest rates. The Consensus among our analysts is for interest rates to end this year close to their current level. Most panelists see rates on hold, some see cuts and one sees a hike.
Panelist insight: United Overseas Bank’s Ho Woei Chen said: “Despite the positive economic prognosis, the second order effects from the trade war due to a global growth slowdown could eventually have a larger impact on Taiwan’s export-oriented economy. The CBC may bring forward its rate cut if the rebound in domestic inflation due to the electricity price hike in Apr turns out to be milder than expected. Other than inflation, the correction in the property market will also be a focus for the CBC. For now, we maintain our forecast for the CBC to stay on hold at 2.0% for the rest of 2025.”
Consensus Forecasts and Projections for the next ten years
How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Taiwanese interest rate projections for the next ten years from a panel of 17 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable interest rate forecast available for Taiwanese interest rate.
Download one of our sample reports to visualize what a Consensus Forecast is and see our Taiwanese interest rate projections.
Want to get access to the full dataset of Taiwanese interest rate forecasts? Send an email to info@focus-economics.com.
Latest Global Monetary Policy News
-
Mexico: Central Bank decreases rates in May -
Serbia: NBS leaves rates unchanged in May Central Bank holds again: At its meeting on 9 May, the National Bank of Serbia (NBS) Executive Board kept its... -
United Kingdom: Central Bank decreases rate in May Latest bank decision: On 8 May, the Central Bank voted by a majority to reduce the Bank Rate by 0.25%... -
Peru: Central Bank of Peru decreases rates in May Latest bank decision: At its meeting on 8 May, the Central Bank of Peru (BCRP) decided to reduce the reference... -
Norway: Norges Bank postpones a loosening cycle again in May Policymakers deliver another widely anticipated hold: At its meeting on 7 May, Norges Bank stood pat, leaving the sight deposit... -
Brazil: Central Bank slows pace of its tightening cycle in May, as expected Central Bank hikes rates to near 20-year high: At its 6–7 May meeting, the Monetary Policy Committee (COPOM) of the... -
United States: Central Bank leaves rates unchanged in May Latest bank decision: At its meeting ending on 7 May, the Central Bank decided to maintain the target range for...