News
Central bank raises interest rates
Taiwan’s central bank has announced a surprise interest rate hike after wrapping up its quarterly policymaking meeting. According to the bank, it will be raising key interest rates by 12.5 basis points.
Analysts say the move means the central bank will likely continue its efforts to combat inflation, in particular after the US Federal Reserve decided overnight to keep interest rates unchanged after its two-day policymaking meeting.
The decision to hike interest rates comes after the central bank chose to keep rates unchanged for the past three consecutive quarters - or since March of last year.
Market analysts are speculating the bank announced the hike due to concerns that pending increases in electricity rates next month could add upward pressure to local inflation. The Ministry of Economic Affairs' electricity price review committee is meeting this week to discuss adjustments to electricity rates.
