Chen Delin: European And American Interest Rate Increase

After the financial tsunami, the low interest rate environment continues, the market generally expects that Europe and the United States will raise interest rates next year or the end of this year, but according to Hongkong media reports, Chen Delin, President of the Hongkong monetary authority, said at the Hongkong Legislative Council that the rate hike in Europe and the United States is faster than expected.

Analysts say

At the special meeting of the Financial Services Committee of the Legislative Council on March 1st, Chen Delin said that the European Central Bank may need to raise interest rates because of inflation. The US economic growth is better than expected. Now the US medium and long-term interest rates have begun to rise. The Federal Reserve may also modify the loose monetary policy. The European and American markets may raise interest rates earlier, which will lead to the outflow of funds from Hongkong.

In addition, the increase in interest rates will also increase the cost of mortgage contributions to the housing market. It is intended that homebuyers should pay attention to it. The recent tightening of mortgage loans by local banks in Hongkong reflects the low net interest margin and the increased demand for Hong Kong dollar loans.

He said that since 2010, the Hongkong Special Administrative Region government has introduced

Xie Mingguang, director of remittance securities, told the first financial daily that the market expected that Europe and the United States would raise interest rates by the end of this year or early next year. According to Chen Delin's statement, it is likely that Europe and the United States will raise interest rates before the third quarter of this year, which will have a far-reaching impact on the global economy. But in the near future, Bernanke said that inflation in the United States is still relatively low, and in the short term, it is unlikely that the policy of quantitative easing will be resumed.

Xie Mingguang believes that Chen Delin's remarks also help the Hongkong SAR government control the price of property. Recently, individual banks have cancelled the loan scheme linked to the Hongkong interbank offered rate (HIBOR), which shows that the Hong Kong dollar loan has tightened. However, there are many factors that affect the price of Hongkong property. Interest rate is not the only factor.