Yam is probably right. Rates should be hiked to prevent overheating the economy and prevent interest rate arbitrage.
Hong Kong Gets Prominent Back-Seat Driver in Dollar Peg Defense
Few managers appreciate having their predecessor chime in with tips on how to do their job. In the case of the Hong Kong Monetary Authority, it’s the agency’s most famous former boss. The city’s de facto central bank said in a statement Tuesday there’s no need for it to adjust interest rates proactively because that would spur inflows, offsetting the impacts of higher borrowing costs and stoking concerns over the city’s determination to defend its linked exchange rate. Former HKMA Chief Executive Joseph Yam apparently disagrees. In an interview with local media published Monday, he said there’s room for the de facto central bank to ... (full story)
- Posted: Apr 17, 2018 6:59am
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