The central bank of Taiwan left its key policy rate unchanged at 1.375 percent on March 21st 2019, matching market expectations, saying Taiwan's economy would likely expand at a somewhat slower pace this year due to lower global growth and persistent uncertainties over the international economic, trade, and financial prospects. In addition, the actual output remains below potential and inflationary pressures are expected to be subdued. Policymakers forecast Taiwan's GDP growth to be 2.13 percent in 2019, lower than the previous year. Inflation and core inflation for 2019 are seen at 0.91% and 0.78%, respectively. Interest Rate in Taiwan averaged 1.88 percent from 2000 until 2019, reaching an all time high of 4.63 percent in December of 2000 and a record low of 1.25 percent in February of 2009.
Interest Rate in Taiwan is expected to be 1.38 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Taiwan to stand at 1.38 in 12 months time. In the long-term, the Taiwan Interest Rate is projected to trend around 1.38 percent in 2020, according to our econometric models.