Taiwan’s Central Bank Makes Modest Rate Hike as Growth Slows
- Policy rate rises by 12.5 basis points, in line with forecasts
- Officials seek to balance inflation risks and slowing economy
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Taiwan’s central bank increased its benchmark interest rate by a modest amount on Thursday, the third hike this year, as it tries to battle inflation without further weighing down its slowing economy.
The central bank raised its policy rate by 12.5 basis points to 1.625%, in line with forecasts of most economists surveyed by Bloomberg. It also increased its reserve requirement ratio by a quarter point. At the same time, the bank cut its 2022 economic growth forecast for the third time this year -- to 3.51% -- with gross domestic product expected to slow further next year to 2.9%.