Taiwan’s central bank has raised interest rates for the first time in two years, following a decision by the US Federal Reserve to raise interest rates due to rampant global inflation.
The Central Bank of the Republic of China increased the discount rate by 25 basis points to 1.375% from 1.125%.
It also increased the guaranteed loan interest rate to 1.75% from 1.50% and increased the non-guaranteed loan interest rate to 3.625% from 3.375%.
The central bank of Taiwan has attributed its decision to raise interest rates to offset rising commodity prices triggered by the Russia-Ukraine conflict and the recent recovery in the local services sector.
It also slightly adjusted its forecast for GDP growth in 2022 to 4.05% from the previous estimate of 4.03%.
Source: Capital
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