The Hong Kong Monetary Authority (HKMA) recently announced an interest rate hike after the region’s foreign exchange reserves hit a two-year low. Stabilization of the HKD exchange rate would eat into many foreign exchange reserves, and create a pressing threat to the assets bubble, experts warned.
HKMA’s move comes the day after the Federal Reserve announced on May 4 a 50-basis point interest rate hike and a shrinking of its balance sheet.
