Fed’s rate hike could benefit Taiwan exports

The finance ministry says the recent decision of the US Federal Reserve to start raising interest rates again could eventually benefit Taiwan’s exports.

On Wednesday, the Fed raised its key interest rates by 0.25 percentage points as was widely expected, citing a healthy US economy. It was only the second time the Fed has raised the rate since a year ago.

Vice Finance Minister Su Jain-rong said Thursday however that the overall international economic and financial situation will not see any substantial changes from just one rate hike. Su said there are other global financial factors that will affect the situation.

Su, the manager of the nation’s stabilization fund, said his office will closely monitor the effects of the Fed’s rate hike on the local equity market. The fund was set up by the government as a buffer against unexpected external factors that might affect the local stock market.

Source: Radio Taiwan International