Hong Kong kept its key interest rate unchanged for a sixth consecutive time in lockstep with the Federal Reserve’s overnight decision, with sticky US inflation forcing investors to delay rate cut bets.
The number of Hongkongers with negative-equity loans stood at 32,073 in the first quarter of the year, tripling from the previous quarter and the most since some 40,000 cases were recorded in the first quarter of 2004.
Analysts expect the Federal Reserve to start cutting interest rates next year, with one expecting the first salvo in March. Lower rates would benefit Hong Kong’s property and capital markets, and boost the yuan, they said.