Taiwan raises interest rates again

Taiwan's central bank raised its key interest rates by a further 12.5 basis points, after an increase of 25 basis points in June. The move brings the discount rate to 3.25%.

The central bank began a round of rate tightening measures in September 2004. Since that date there have been 13 rate hikes to a total of 187.5 basis points, or 1.875%. However, the central bank's governor, Perng Fai-nan, said Taiwan's real interest rates still stand below "neutral" levels.

"We hope our real interest rates

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