Bank of Taiwan hikes rates after central bank move

State-run Bank of Taiwan said Monday it plans to raise its fixed savings and deposit rates after the central bank boosted its benchmark discount rate by 12.5 basis points last week.
With effect from Tuesday, the bank will raise its one-year fixed deposit rates to 2.675 percent from 2.635 percent, it said in a statement.

The bank will also lift its one-year fixed savings rate to 2.700 percent from 2.660 percent, it said.

Last week, Taiwan's central bank raised its benchmark discount rate to 3.5 percent, the highest in about 6-1/2 years, to tackle increasing inflationary threats.