The US Federal Reserve plans to press ahead with its campaign of interest rate rises, even as it slows the pace of increases amid signs inflation has peaked.
The U.S. Federal Reserve is expected to raise interest rates for the eighth time in a row by a quarter point. The market predicts that the rebound in U.S. stocks at the beginning of this year may fade away. As for the performance of Taiwan stocks on the 1st, the TAIEX index opened at 15,346 points, with an intraday low of 15,330 points. It rose 65 points at one point.
Liao En-ping, Assistant V.P., Investment Advisory Dept., President Futures: “Even if there is another interest rate hike in the first half of this year, it should be a relatively gentle increase of 0.25 percent. So the relatively tight monetary situation in the past is expected to ease. So I think Taiwan stocks still have some opportunities and room for performance for the whole first half of this year.”
The New Taiwan Dollar held the NT$30 level at the opening, but rose to NT$29.995 against the U.S. Dollar during intraday. Analysts believe that if the U.S. Federal Reserve continues to slow down interest rate hikes, the U.S. dollar will remain weak in the first half of this year, while non-U.S. currencies will have support, with a low chance of depreciating. However, Taiwan's exports declined in December last year and the entire year. The fourth quarter, which tends to be the seasonal high quarter for exports, was not the case last year. Thus, there's concern about Taiwanese exports going forward.
Chiu Chun-jung, Professor, Economics Dept., National Central Uni.: “The deterioration caused by inflation probably hurt global demand. So if we are facing a structural impact such as this, I'm afraid I'm not optimistic about our export situation in the future.”
Experts believe that the U.S. Federal Reserve will continue to fight inflation by increasing interest rates but will adapt as the situation changes.