Taiwan leaves interest rates unchanged, sees GDP grow 1.6%

Central Bank revises GDP forecast, should grow by 3.28% in 2021

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Taiwan's Central Bank 

Taiwan's Central Bank  (CNA photo)

TAIPEI (Taiwan News) — The Central Bank left key interest rates unchanged Thursday (Sept. 17) while revising its growth forecast for the year upward to 1.6 percent.

With economic growth picking up during the second half of the year, while exports rose and the Wuhan coronavirus (COVID-19) pandemic seemed under control, the Central Bank took the decision to freeze interest rates for the second quarter in a row, CNA reported.

At its meeting for the third quarter of the year, the bank decided to leave the discount rate at 1.125 percent, the lowest in the country's history. The decision meant that the rate on accommodations with collateral would stay at 1.50 percent and the rate on accommodations without collateral was 3.375 percent.

As to Gross Domestic Product, the bank had previously suggested 1.52 percent as the growth figure for 2020, but was now raising that prediction to 1.6 percent. Next year, the economy would improve further with growth of 3.28 percent, according to the CNA report.

Government measures to boost the economy, rising consumer confidence, and the semiconductor industry’s capital spending were additional factors for optimism in the final quarter of 2020.