Hong Kong’s rate to rise slowly, US banking issue not to affect Hong Kong financial system – HKMA chief executive
Hong Kong’s rate to rise slowly, US banking issue not to affect Hong Kong financial system – HKMA chief executive

Hong Kong’s rate to rise slowly, US banking issue not to affect Hong Kong financial system – HKMA chief executive

 

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When about his forecast of whether the US Fed will switch to rate cut this year, Eddie Yue, Chief Executive of the Hong Kong Monetary Authority (HKMA), cited the Fed’s remarks that such possibility is low, viewing that the market may be overly optimistic. 

Yue expected that Hong Kong’s interest rates will still rise slowly, but said whether the aggregate balance of the banking system of Hong Kong will drop again depends on the interest rate arbitrage activities and market demand for HKD. 

Yue reassured that there should be no worry from the market as the capital environment of Hong Kong remains abundant. 

He added that Hong Kong monetary and financial system will not be affected by regional banking issue in the US, and that local banks have no related risk exposure.