UPDATE 1-Taiwan central bank leaves key rate unchanged, raises growth outlook

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- Taiwan's central bank held its policy interest rate steady on Thursday, as expected, given the island's tech-driven export-dependent economy remains strong, and raised its growth outlook for the year.

The central bank left the benchmark discount rate TWINTR=ECI at 2%, in a unanimous decision and in line with predictions from a Reuters poll where all 29 economists forecast no change.

The central bank raised its economic growth forecast to 7.28% from the previous prediction of 3.67% given in December.

Taiwan's economy grew 8.68% in 2025, its fastest rate in 15 years, buoyed by high demand for semiconductors used in artificial intelligence applications from companies such as Nvidia NVDA.O.

The central bank also slightly raised its consumer price index (CPI) forecast for this year to 1.8%, up from its December forecast of 1.63%.

Taiwan's rate decision came a day after the U.S. Federal Reserve held interest rates steady and projected higher inflation, steady unemployment and a single reduction in borrowing costs this year.