Writes throughout with context, growth forecast and background

TAIPEI, June 18 (Reuters) - 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 line with predictions from a Reuters poll where 27 out of 30 economists forecast no change.

The central bank raised its economic growth forecast to 9.45% from the previous prediction of 7.25% given in March.

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 raised its consumer price index (CPI) forecast for this year to 1.91%, up from its March forecast of 1.8%.

Taiwan's rate decision came after the U.S. Federal Reserve held its benchmark interest rate steady, though new quarterly projections showed officials expect a hike in borrowing costs later this year on increasing inflation concerns.