The central bank of Taiwan left its key policy rate unchanged at 1.375 percent on September 19th 2019, as widely expected. Policymakers said that they will maintain accommodative monetary policy and added that will closely monitor developments in the US-China trade war, monetary policy trends of major economies, geopolitical situation, and the impact of global financial market changes on the domestic economic. The Committee noted a slowdown in domestic inflation and added that inflation outlook remains stable. Policymakers lowered its projections for inflation rate to 0.7 percent (vs 0.87 percent in August) for 2019 and the core inflation rate is seen at 0.56 percent (vs 0.76 percent in August projection). Inflation and core inflation for 2020 are expected to be at 0.88 percent and 0.77 percent, respectively. The Committee also revised its forecasts for Taiwan’s GDP growth to 2.40 percent from a previous 2.06 percent for 2019 and for 2020 the economy is expected to grow 2.34 percent. Interest Rate in Taiwan averaged 1.87 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.