TAIPEI (Taiwan News) — The Central Bank cut its forecast for Taiwan’s economic growth this year to 1.46%, as it decided on Thursday (Sept. 21) to leave interest rates unchanged for the second time in a row.

Its previous forecast, issued in June, saw gross domestic product (GDP) expand by 1.72%, per CNA. A recovery was likely in 2024 though, with the economy growing by 3.08%.

The consumer price index (CPI) was likely to rise by 2.22% this year, with core inflation reaching 2.44%, the Central Bank said. As to Taiwan’s GDP performance for 2023, think tanks have been cutting their forecasts from more than 2% to around 1.5%, though an upturn was expected before the end of the year.

As Taiwan’s economy was not performing as expected this year, the interest rates would remain unchanged to help stabilize economic and financial development, according to the bank.

Its decision followed within 24 hours of the United States Federal Reserve also choosing to pause rate hikes. The U.S. is likely to implement one more increase before the end of 2023 but fewer cuts next year than previously indicated, CNBC reported.