Hong Kong Monetary Authority Urges Caution On U.S. Rate Hike

Investors in Hong Kong should manage investment risks prudently as the Hong Kong Monetary Authority (HKMA) believes a U.S. interest rate lift off is getting closer, Chief Executive of the HKMA Norman Chan said here on Thursday.
In a statement released Thursday, the HKMA said it noted that the U.S. Federal Open Market Committee kept interest rates unchanged at its meeting Wednesday.
The committee said the economy expanded moderately, indicating that it would be appropriate to raise rates when it has seen some further improvement in the labor market, and is reasonably confident that inflation will return to 2 percent over the medium term, said the statement.
Chan said the normalization of U.S. rates is likely to have material impact on global fund flows and asset markets, and may lead to greater market volatility. (Cihan/Xinhua)