Imminent interest rate cut unlikely: Eddie Yue
The Hong Kong Monetary Authority's chief executive Eddie Yue on Sunday pushed back against market expectations of an imminent interest rate cut, saying he did not expect the US Federal Reserve to start lowering rates until mid-2024. The Fed last week kept interest rates steady and indicated reductions are on the cards next year. "After the Fed's recent announcement, which signalled a possible end to rate hikes, the market is expecting a rate cut early next year, possibly in February or March. I think this is too optimistic. Typically, the Fed is likely to cut rates after the middle of next year," Yue told a radio programme. He added that the market needs to monitor data, especially those related to the labour market, in the coming six months to make a more definitive prediction.  The HKMA chief also rejected claims that Hong Kong is now a "relic" of an international financial centre, saying the city has the largest banking system among all the international financial centres in Asia.  He said the trading volume in stocks in the SAR outperforms neighbouring regions, adding that Hong Kong is the largest asset management hub in Asia. Yue also revealed that the HKMA will organise the third Global Financial Leaders' Investment Summit in November next year.