Taiwan Raises Key Rate, Seeks to Prevent Property Speculation

Taiwan increased its benchmark interest rate for the second time this year and said it will try to prevent real-estate speculation after a jump in home prices fueled concern the economic recovery may stoke a property bubble.

Central bank Governor Perng Fai-nan and his board raised the rate by 0.125 percentage point to 1.5 percent. Eleven of 14 economists in a Bloomberg News survey predicted yesterday’s decision. The rest forecast no change following a similar advance in June from a record-low 1.25 percent.