The Central Bank of Taiwan kept its key discount rate unchanged at 2% in its December 2025 meeting, in line with market expectations, marking a hold since March 2024. Citing inflation remains moderate, the consumer price index for 2025 projected to rise 1.66% year-on-year and core CPI at 1.65%, both down from 2024 levels. Economic growth has been robust, with GDP up 7.18% year-on-year in the first three quarters of 2025, surpassing forecasts, and full-year growth expected at 7.31%, driven largely by strong demand in emerging technology sectors, including artificial intelligence. Growth is projected to moderate but remain steady at around 3.67% in 2026. The central bank cited global uncertainties, including AI industry developments, U.S. trade policy shocks, slower growth in China, major central banks’ policy moves, and geopolitical and climate risks, saying a steady policy rate will support growth while ensuring price and financial stability.