Hong Kong may not raise interest rates with the United States every time.
The opportunity for the US Federal Reserve to raise interest rates next week is still quite large. Will Hong Kong banks follow the upward adjustment of interest rates, which will have an impact on loans and mortgage purchasers. The Governor of the HKMA, Chen Delin, said in Beijing yesterday that if the US raises interest rates next week, whether Hong Kong banks follow in the month, how much, etc., are all commercial decisions made by individual banks. However, he mentioned that in the long run, “Hong Kong will not necessarily Every time I follow the US interest rate hike, and reiterate that the interest rate of Hong Kong is gradually getting closer to the US is “something will happen."
Mr Chan pointed out that banks in Hong Kong have entered a rate hike cycle. “But in the past, Hong Kong Bank has still had a very low rate of increase in deposits, mortgages or loan interest rates." Earlier, Hong Kong’s interest rate was significantly lower than that of the US dollar. The funds flowed from the Hong Kong dollar to the US dollar. The decrease in supply led to a surge in the Hong Kong dollar interest rate (HIBOR). The interest rate of the Hong Kong dollar was close to the US dollar. In fact, before the Hong Kong dollar raised interest rates in mid-September, Chen Delin said, “The US interest rate hike will increase interest rates in Hong Kong. Individual banks will consider whether to raise interest rates." The current situation of the HKMA is obviously milder than that in September.
Shi Yingyin said that it is difficult to comment on whether it will be synchronized
In mid-September, the Chairman of the Banking Association and the Chief Executive Officer of HSBC Hong Kong, Mr Sze Ying-yin, also pointed out after the regular meeting that “the interest rate hike is close to the critical point". Her calibre was also relatively loose yesterday, saying that the recent Hong Kong dollar interest rate hike mainly reflects the year-end factor. At present, liquidity is still abundant. Whether Hong Kong Bank will raise interest rates with the United States in the month, “in addition to observing the interest rate, we must also look at other factors, including the balance of the banking system." She also added that there are many global uncertainties at present. It is difficult to comment on whether Hong Kong banks need to raise interest rates again next week. The Fed will hold a meeting on interest rates from December 19 to 20, local time in the United States.
As for the Chief Executive, Mrs Lam, he said bluntly that even if the property price in Hong Kong is adjusted back, the Government will not rescue the market. Regarding the counter-cyclical measures of the HKMA, Chen Delin reiterated that when the economic cycle goes up, the bureau will tighten measures to prevent risks. If the cycle of the downturn is confirmed, it may consider relaxing. However, he stressed that property prices in Hong Kong are still rising in the first seven months of this year. It has only fallen 3.7% since the beginning of the month, and the observation time is still not enough to confirm the down cycle.
The HKMA refers to the unrecognized downturn in the property market
In addition, Yesterday’s visit to the Beijing delegation visited the People’s Bank of China, the State Administration of Foreign Exchange, the State-owned Assets Supervision and Administration Commission of the State Council, the China Banking Regulatory Commission and the China Securities Regulatory Commission. Chen Delin, who led the delegation, revealed that he shared the economic situation with the mainland authorities. Understand that there is uncertainty in the external environment, and the future of the mainland economy is also challenging. However, relevant Chinese departments still have confidence in the prospects. According to the HKMA, China’s open financial market and financial reform policy will not change, and the channels that have been opened will not Take back.