Taiwan’s Largest Financial Group ‘Looking Forward’ to Fed Rate Hikes
- Cathay Financial president hopes for eight Fed rate hikes
- Lee looking forward to central banks reining in liquidity
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After a year of robust economic growth and corporate revenue in Taiwan, the head of the island’s largest financial group is now anticipating that a string of interest rate increases from the U.S. Federal Reserve will stoke profits further after a record year.
While liquidity measures from central banks boosted earnings for most financial companies last year, it now makes sense for policy makers to gradually increase borrowing costs, Cathay Financial Holding Co. President Lee Chang-ken said in an interview in Taipei Wednesday.