Taiwan hikes rates to 3.375%

The board of the Central Bank of the Republic of China (Taiwan) on Thursday opted to raise its benchmark discount rate by 12.5 basis points to 3.375%.

The board also voted to step in if the dollar exchange rate is disrupted by "seasonal or irregular factors".

Accelerating inflation was behind the decision to hike rates. The directorate-general of budget, accounting and statistics now predicts prices will rise by 1.84% next year, slightly higher than the 1.65% forecast for this year.

"The pers