The central bank of Taiwan held its key policy rate at 1.375 percent on June 20th 2019, as widely expected. Policymakers said that internal demand continued to be the driver of economic growth. The Committee added that will pay close attention to the monetary policy trends of major economies, ongoing trade tensions between the US and China, geopolitical risks, and the impact of global financial market changes on domestic economic and financial situations. Policymakers lowered its forecasts for Taiwan’s GDP growth to 2.06 percent from a previous 2.13 percent for 2019. Inflation and core inflation for 2019 were also revised lower to 0.87 percent (vs 0.91 percent in March projection) and to 0.76 percent (vs 0.78 percent), respectively. 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.