Moody's Affirms Taiwan's Sovereign Rating at Aa3, Praises Central Bank's Monetary Policy

(Central News Agency, Taipei, June 4) Moody's Investors Service has released its rating report, affirming Taiwan's sovereign credit rating at 'Aa3' and maintaining a 'stable' outlook. The agency praised the central bank's monetary policy for keeping inflation at a low and stable level over the long term.

In a press release issued today, the Central Bank of Taiwan stated that Moody's rating and outlook reflect Taiwan's high income levels, robust institutional framework, strong external position, and its dominant role in the global semiconductor supply chain.

Moody's believes that Taiwan's leading position in advanced chip manufacturing is a key driver of the economy's resilience, helping to sustain strong growth and competitiveness. However, the report also noted challenges such as uneven growth between the tech sector and traditional manufacturing and services, as well as an aging population.

The report indicated that Taiwan's effective and credible monetary and macroeconomic policymaking continues to support the country's stability and resilience against external pressures. The central bank's appropriate monetary policy has kept inflation low and stable over the long term, with an average inflation rate of only about 1.3% over the past 20 years and below 2% in the first four months of this year.

The central bank stated that regarding Environmental, Social, and Governance (ESG) factors, Moody's assigned Taiwan the highest governance score of G-1, reflecting the country's strong institutions and government governance, as well as effective and credible monetary management and fiscal policy.