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Taiwan hikes key rate for 2nd straight meeting as inflation surges

Consumer price index rose in May at fastest pace in nearly 10 years

A teller counts New Taiwan dollar banknotes at a bank in Taipei, on February 23, 2017.   © Reuters

TAIPEI -- Taiwan's central bank raised its benchmark interest rate on Thursday for the second consecutive quarter, as it joins other global monetary authorities in tightening policy to quell surging inflation.

The 12.5 basis point increase to 1.5% follows a 25 basis point hike the previous quarter. Taiwan's consumer price index rose 3.39% in May from a year earlier -- its fastest climb in nearly a decade and above the central bank's 2% target for the 10th straight month.

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