Radio Taiwan International
Date: 2017-12-18

Lawmakers questioned the Financial Supervisory Commission (FSC) chairman on Monday about the impact of the interest rate hike by the US Federal Reserve last week. The Fed raised its federal funds rate target range by a quarter point to 1.25%-1.50%. It also will continue its quantitative tightening policy that began in October.

Experts in Taiwan are divided about the affect it will have on Taiwan’s stock market. Some say it will help it rise to over 12,000 points next year, while others say it could lead to another crash in the financial markets.

FSC Chairman Wellington Koo said US financial policies will have an impact on Taiwan’s stock market but Taiwan’s fundamentals are key. He said that if GDP growth is at government projected rates and companies are making good profits, then US policies should not have a large impact.    [FULL  STORY]