Taiwan ETFs In Focus After Surprise Rate Hike

Taiwan’s central bank shocked investors on Thursday by announcing the first interest rate hike in nearly two years, a move reflecting increased confidence in country’s economic outlook. The Central Bank of the Republic of China (Taiwan) raised key rates by a modest 12.5 basis points, moving the benchmark discount rate to 1.375%. “Guiding market rates to normal levels is our main concern,” said central bank Governor Perng Fai-nan after announcing the rate hike. The decision comes as a surprise to many investors; with relatively high unemployment and concerns that euro zone woes could weigh on demand for electronics, many economists had been expecting rates to remain low until the third quarter at least. The move to raise interest rates in Taiwan may have been driven in part by Beijing’s announcement over the weekend that China would allow its currency to fluctuate more widely against the U.S. dollar. A stronger yuan [...] Click here to read the original article on ETFdb.com. Related Stories: Australia ETFs Surge On Interest Rate Hike Canada ETFs Rise On Interest Rate Hike Chinese Yuan ETF In Focus After Beijing’s Surprise Announcement