Central bank raises interest rate
Taiwan’s central bank has raised its key interest rates by 12.5 basis points following its quarterly policymaking meeting. It was the third consecutive quarter the bank has increased interest rates as it takes steps to combat inflation.
The latest rate hike means that the central bank's discount rate will rise to 1.625%, while the rate on accommodations with collateral will grow to 2%, and the rate on accommodations without collateral will rise to 3.875%. The rate hike is scheduled to take effect today.
The latest rate increase of 12.5 basis points had been widely anticipated as market analysts say the comparatively moderate approach is the result of Taiwan being under less inflationary pressure than the US and other countries, such as those in Europe.The island's consumer price index rose 2.66% in August - and that was the lowest growth rate since February.