Wary of inflation, Taiwan central bank raises key rate in surprise move By Reuters
Breaking News
‘;
Published Mar 21, 2024 04:56AM ET
Updated Mar 21, 2024 05:21AM ET
© Reuters. FILE PHOTO: A staff member stands beside the Taiwanese Central Bank logo in Taipei, Taiwan February 26, 2018. REUTERS/Tyrone Siu/File Photo
By Liang-sa Loh and Faith Hung
TAIPEI (Reuters) -Taiwan’s central bank surprised markets by raising its policy rate on Thursday, wary of continued inflationary pressures and ahead of an expected rise in electricity prices next month.
The central bank hiked the benchmark discount rate to 2% from 1.875%, where it has stood since last March, citing concern about the effect of April’s power price hike and as inflation persists.
In a Reuters poll, 25 out of 26 economists had predicted the central bank would keep the rate unchanged. The new rate remains at a much lower level relative to major economies.
Taiwan’s central bank increased its forecast for the consumer price index (CPI) this year to 2.16% from a previous prediction of 1.89%.
The island’s CPI rose 3.08% in February, a 19-month high, as food prices climbed during the Lunar New Year holiday.
Taiwan’s government will announce on Friday by how much electricity prices will go up.
Taiwan’s unexpected rate rise follows the U.S. Federal Reserve’s decision on Wednesday to leave rates on hold though it indicated it would stick with plans to cut borrowing costs this year.
Taiwan’s central bank also raised its 2024 estimate for economic growth to 3.22% from a forecast of 3.12% in December, as global demand for made-in-Taiwan tech products as well as domestic spending rebound.
The economy grew at its slowest pace in 14 years in 2023.
Wary of inflation, Taiwan central bank raises key rate in surprise move
Most Popular Articles
Terms And Conditions
Privacy Policy
Risk Warning
Do not sell my personal information
© 2007-2024 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
