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Taiwan raises interest rate to curb inflation

Taiwan raises interest rate to curb inflation

Taiwan raised a key interest rate Thursday for the third time this year to combat inflation and curb continuing rise in real estate prices.
The island's Central Bank raised the benchmark interest rate by 0.125 percentage point to 1.625 percent, saying the move will help stabilize Taiwan's consumer prices and financial market.
However, some are concerned the rate hike will attract more funds from abroad, drive up the Taiwanese currency and batter the island's export-reliant economy. The New Taiwan dollar closed at 30.217 against the U.S. dollar before the announcement by the central bank, shedding some gains from its 13-year high of 29.198 during the day.
Taiwan's Financial Supervisory Commission said also Thursday they will start examining the movement of foreign capital on the island, a day after the central bank said mass sell-off of U.S. dollars by banks acting on behalf of foreign institutional investors in recent days had caused "disorder and panic" in the local financial market.
Taiwanese officials have said the economy is projected to grow a healthy 4.5 percent in 2011 as its improving relations with China will likely continue to bring major economic benefits.


Updated : 2021-05-07 22:30 GMT+08:00