The central bank also pushed up its inflation projection to 2.1 percent from 1.8 percent previously, signaling that conditions are building for further policy tightening. Most central banks that have raised rates this year are among emerging economies, concerned about capital flight and imported inflation. In Asia, Sri Lanka raised rates last week, making it the first in the region to do so. That contrasts with New Zealand, which last week delayed a widely expected interest rate increase as its first COVID-19 outbreak in six months cast uncertainty over its economic recovery. There are two more interest rate review meetings scheduled this year.

Source: Taipei Times August 26, 2021 15:56 UTC