The central bank has warned that there are four major risks that may affect Taiwan in the second half of this year.
In its Financial Stability Report issued on Thursday, the central bank pointed out four risks: US interest rate hikes, slower-than-expected global recovery, a slowing Chinese economy, and a rebound in global oil prices.
The central bank said so far, the Taiwanese financial system is still stable. But it said the divergence in monetary policies of the major economies could pose a risk. It said the US is expected to raise its interest rates this year, but Europe and Japan are continuing with their quantitative easing programs, so the global financial markets may see increasing volatilities in the second half of the year.