Bank cuts rates unexpectedly: At its meeting on 9 October, the Bangko Sentral ng Pilipinas (BSP) decided to reduce the...
Discount Rate in Taiwan
The Discount Rate (%, eop) ended 2024 at 2.00%, up from the 1.88% end-2024 value and up from the reading of 1.88% a decade earlier. For reference, the average interest rate in East & South Asia was 5.50% at end-2024. For more information on interest rate, visit our dedicated page.
Taiwan Interest Rate Chart
Note: This chart displays Policy Interest Rate (%) for Taiwan from 2025 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 September
Latest bank decision: At its meeting on 18 September, Taiwan’s Central Bank decided to keep the discount rate unchanged at 2.00%, where it’s been since early 2024.
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 below 2.0% on average so far this year and should remain mild going forward. Elevated uncertainty over U.S. trade policy was another reason to stay on hold.
No major deviations in monetary policy expected: The Central Bank did not provide specific forward guidance on the future direction of interest rates. Panelists are roughly split on the outlook for this year: Around half the panel sees rates on hold and the other half expects mild monetary easing. Next year, the majority anticipate small interest rate cuts in line with slowing economic growth.
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 15 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.
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