Taiwanese Interest Rate Hike
March 21, 2024
A 12.5-basis point interest rate hike announced today by the Central Bank of the Republic of China (Taiwan) also caught market participants by surprise. A 1.875% rate level has been maintained since a similar-sized increase in March 2023 had augmented five earlier increases since February 2022. In taking this additional step, officials acted to avoid rising inflation expectations “given that inflation has stayed at a relatively higher level since 2021 and that a proposed electricity rate hike might be implemented in April this year.” CPI inflation jumped to 3.1% last month from 1.8% in January, and economic growth is projected to strengthen this year.
Copyright 2024, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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