Taiwan central bank guides overnight interbank rate lower

Taiwan's Central Bank guided the overnight interbank rate lower for the fourth day in a row Friday, after forecasting the consumer price index to contract this year. The rate was lowered to 0.379 percent from 0.382 percent on Thursday. This is the rate that banks can borrow from each other in the interbank market on a short-term basis. It is a market rate though it tends to be guided by the central bank, traders say. The rate was first lowered early this week after a devaluation in China's yuan.