The decision came after the U.S. Federal Reserve raised interest rates by an expected 50 basis points on Wednesday and said it would deliver more interest rate hikes next year even as the economy slips towards a possible recession. Taiwan's central bank, at its quarterly monetary policy meeting, raised the benchmark discount rate (TWINTR=ECI) by 12.5 basis points to 1.75%, in line with economists' expectations in a Reuters poll. Governor Yang Chin-long said that, while the bank was still tightening monetary policy, the direction this time was "mild" given the lack of another reserve requirement rise. "For next year's monetary policy, we will focus on stabilising prices," he told reporters. The central bank again cut its 2022 estimate for gross domestic product growth, to 2.91% from its previous forecast of 3.51% in September.

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