The central bank of Taiwan raised its key discount rate by 12.5 bps to 1.5% in June 2022, a second straight increase and pushing borrowing costs to the highest level since 2016. The move came in line with market expectations. source: Central Bank of the Republic of China (Taiwan)

Interest Rate in Taiwan averaged 1.75 percent from 2000 until 2022, reaching an all time high of 4.63 percent in December of 2000 and a record low of 1.13 percent in March of 2020. This page provides the latest reported value for - Taiwan Interest Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. Taiwan Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on July of 2022.

Interest Rate in Taiwan is expected to be 1.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Taiwan Interest Rate is projected to trend around 2.50 percent in 2023, according to our econometric models.

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Taiwan Interest Rate

Calendar GMT Actual Previous Consensus TEForecast
2021-12-16 09:00 AM 1.125% 1.125% 1.125% 1.125%
2022-03-17 08:30 AM 1.375% 1.125% 1.125% 1.125%
2022-06-16 08:50 AM 1.5% 1.375% 1.50% 1.45%
2022-09-22 09:00 AM 1.5% 1.75%
2022-12-15 09:00 AM

Related Last Previous Unit Reference
Interest Rate 1.50 1.38 percent Jun 2022
Money Supply M1 10279100.00 10336829.00 TWD Million May 2022
Money Supply M0 2806329.00 2801192.00 TWD Million May 2022
Money Supply M2 55543738.00 55291270.00 TWD Million May 2022
Banks Balance Sheet 54639386.00 54946284.00 TWD Million May 2022
Foreign Exchange Reserves 5488.54 5450.61 USD HML May 2022
Loans to Private Sector 14017285.00 13938910.00 TWD Million May 2022
Central Bank Balance Sheet 18938289.00 19026692.00 TWD Million May 2022
Loan Growth 8.17 9.19 percent May 2022

Taiwan Interest Rate
In Taiwan, interest rate decisions are taken by Central Bank of the Republic of China (Taiwan). The official interest rate is the discount rate on 10-day loans to banks.
Actual Previous Highest Lowest Dates Unit Frequency
1.50 1.38 4.63 1.13 2000 - 2022 percent Daily

News Stream
Taiwan Raises Key Rate for 2nd Time
The central bank of Taiwan raised its key discount rate by 12.5 bps to 1.5% in June 2022, a second straight increase and pushing borrowing costs to the highest level since 2016. The move came in line with market expectations and follows the Fed's biggest rate hike since 1994. The central bank also signalled it will continue to adopt a tightening monetary policy stance, which will help strengthen the policy effect, curb domestic inflation expectations, and maintain price stability. Policymakers also revised inflation forecasts for this year higher to 2.83% (vs 2.37% expected in March) while GDP growth is seen lower at 3.75% (vs 4.05% seen in March).
Taiwan Hikes Key Rate in Line with US Fed
The Central Bank of the Republic of Taiwan raised its key discount rate by 25 basis points to 1.375% on March 17th 2022, in line with the US Fed rate hike in the previous day but surprising analysts, who widely expected the central bank to hold interest rates at a record low of 1.125%. The central bank said its move aimed at curbing inflation expectations, maintaining price stability, and assisting the overall economic and financial development of the policy objectives. Policymakers noted the recent sharp rise in commodity prices due to the war in Ukraine and that the headline inflation rate remained above 2% for seven straight months, as well as the recovery in demand for services. The central bank’s guaranteed loan facility rate and short-term facility rate were also raised by 25bps to 1.75% and 3.625%, respectively. Looking ahead, inflation is seen below 2% in the last quarter of 2022 and full-year economic growth was revised higher to 4.05%.
Taiwan Interest Rate Unchanged as Expected
The Central Bank of the Republic of Taiwan held its key discount rate at a record low of 1.125 percent on December 16th 2021, as expected, arguing that inflation remained controllable despite being above 2% for four consecutive months, and that the recovery was uneven across different industries. Additionally, the Board of the central bank expressed some concern about the evolving global pandemic situation, with resurging cases in Europe and the new omicron variant adding to downside risks. Looking ahead, policymakers see inflation average at 1.97% this year and then ease to 1.59% in 2022 as oil prices slow and wage growth remains mild. Meanwhile, the export-dependent economy is expected to expand steadily this quarter and the annual growth rate for 2021 was revised higher to 6.03% and 4.03% in 2022, sustained by robust demand for technology products.