TNC Business Strategy Research
Taiwan 2020 Taiwan interest rates remain unchanged and GDP grow 1.6%
Taiwan interest rates remain unchanged and GDP grow 1.6%
The Central Bank announced on September 17 to maintain the interest rates unchanged and raised its full-year growth forecast to 1.6%.
As economic growth accelerated in the second half of the year, exporting growth and the Wuhan Coronavirus (COVID-19) pandemic appeared to be under control, the Central Bank has decided to freeze the interest rates for the second consecutive quarter at 1.125%, which is the lowest level in Taiwan’s history. The decision means that the interest rate of housing mortgage will remain at 1.50%, while the interest rate of the unsecured loans will remain at 3.375%.
Regard to GDP, the bank previously proposed to increase the growth figure for 2020 to 1.52%, but now raises the forecast to 1.6%. The economy will further improve at a rate of 3.28% next year.
The government’s measures to stimulate the economy, increasing consumer confidence and capital expenditures in the semiconductor industry are key factors for optimism in the fourth quarter of 2020.