Taiwan's central bank last raised the discount rate 12.5 basis points to 1.875% at its July meeting this year, also raising 12.5 basis points in March. The Bank also recently raised the minimum liquidity requirements ratios. Taiwan reported annual consumer price inflation of 1.01% in November, steady against earlier readings this year of 1.32% in July, 1.93% in June, 1.7% in May, and 1.3% in April, meanwhile the government is forecasting 2011 inflation of 2.1%.
The Taiwan economy grew 3.37% year on year in the September quarter (5.02% in Q2 2011, and 6.2% in Q1 2011); slower than 2010's 10.9% economic growth rate, according to the Directorate General of Budget, Accounting and Statistics. Taiwan's currency, the Taiwanese Dollar (TWD), has weakened about 5% against the US dollar this year, and the USDTWD exchange rate last traded around 30.30.