Taiwan’s central bank kept its discount rate at 2% at its September 2026 board meeting, marking a tenth consecutive quarter without a rate change and leaving borrowing costs at their highest level since 2008. The collateral loan accommodation rate remained 2.375%, while the short-term accommodation rate stayed at 4.25%. The decision followed a quarter-point increase by the Federal Reserve to 3.75%-4.00%, its first increase since July 2023. Governor Yang Chin-long said, "We walk our own path," as Taiwan prioritized domestic conditions. The bank also eased targeted housing-credit restrictions from Sept. 18, raising the maximum loan-to-value ratio for individuals’ second-home purchases from 60% to 70% and removing a construction-start commitment for land-acquisition loans. It raised its 2026 growth forecast to 11.48%, supported by AI-related demand, exports, investment and consumption, and projected 5.82% growth in 2027. Economists polled by The Wall Street Journal had been nearly evenly divided between a rate increase and a pause.