The Central Bank of the Republic of China, Taiwan’s monetary authority, kept its benchmark interest rate unchanged at 2% at its September 2026 meeting, holding borrowing costs at their highest level since 2008. Headline inflation remained above the central bank’s 2% target for a fourth consecutive month, although it eased to 2.04% in August, reflecting the impact of higher international oil prices. Meanwhile, economic growth remained resilient, with the economy recording its fastest first-half growth since 1976, fueled by the AI boom and strong export growth, particularly in semiconductors. Forecasts for economic growth were raised to 9.09% for the second half of 2026 and 11.48% for the full year, as demand for emerging technologies is expected to remain strong. The inflation forecast was also raised to 2.03%, before easing to 1.83% in 2027 as the surge in oil prices subsides.