According to analysts, the Central Bank of the Republic of China (CBC) is likely to increase its key interest rate again in the next quarter policy-making meeting as the local economy is increasing at a faster-than-expected pace.

While talking to media, an expert said that the CBC is planned to organize a meeting of directors as well as supervisors for the third quarter on Sept 30, when it might hike the discount rate by around 0.125 percentage points after a rate increase declared during the last quarterly meeting inn June.

In the sixth month of this year, the bank lifted the key interest rate by 0.125 percentage point to 1.375 percent, the initial rate increase after 2008 following Taiwan’s emergence from the worldwide slump.

The federal government has increased its prediction of Taiwan’s 2010 gross domestic product (GDP) growth to 8.24 percent from earlier approximation of 6.14 percent after a 13.71 percent GDP growth for the period of January-March and a 12.53 percent growth for the period of April-June.

While talking to media, head economist at Citibank Taiwan, Cheng Cheng-mount said, “Robust exports have served as a driver behind the economic momentum.”

During January to August of 2010, Taiwan’s exports amounted to US$179.86 billion, a growth of 44.2 percent as compared to the same period of the last year due to strong demand for high-tech products.

According to Cheng, “The booming economy has stirred up concern over high-flying asset prices; it is time for the CBC to raise the discount rate by 0.125 percentage points to prevent a bubble.”