Source: Taiwantrade | Updated: 17 March 2011
"The quake's effects on Taiwan's stock and currency markets will be temporary," Hsiao said. "Because of this, we stand by our earlier forecast that the central bank will raise interest rates by 0.125 percent."
The Central Bank of the Republic of China (Taiwan) will have its next directors and supervisors meeting on March 31.
Another analyst, Cheng Chen-mao of Citibank, offered a similar view, saying during a natural disaster, the government must avoid drastic measures to ensure economic stability. As such, the central bank will raise rates by a slight margin of 0.125 percent, he said.