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 came a day after the Federal Reserve raised its benchmark rate by a quarter point 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 over following the U.S. move. The central 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 requirement for land-acquisition loans. It cited improved bank risk controls, cooling property transactions and a decline in real-estate lending's share of total bank credit. The bank sharply raised its 2026 economic growth forecast to 11.48%, supported by AI-related demand, exports, investment and consumption, while projecting 5.82% growth in 2027. It raised its 2026 CPI and core CPI forecasts to 2.03% and 2.16%, respectively, but expects them to ease to 1.83% and 1.89% in 2027.