Taiwan to hike key interest rates
AFP, Taipei
Taiwan will raise key interest rates by 0.125 percentage points in a bid to keep inflation stable, the central bank said Thursday. The latest move to raise the cost of borrowing comes after the central bank hiked rates by 0.25 percentage points in September. From Friday, the discount rate will rise to 1.75 percent from 1.625 percent. The accommodations with collateral rate will rise to 2.125 percent from 2.0 percent, while the accommodations without collateral rate will increase to 4.0 percent from 3.875 percent. "Such increases are aimed at keeping (consumer) prices stable, while preventing possible hikes in utility prices from triggering expectations of inflation," Central Bank of China governor Perng Fai-nan told reporters after the bank's quarterly board meeting.
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