Low rates will not stay long: HK Monetary Authority

Chief Executive of the Hong Kong Monetary Authority Norman Chan said Friday that low interest rates environment would not last forever although the U.S. Federal Reserve decided not to raise interest rates.

Speaking to the media in regard of the U.S. Fed's latest decision of holding back the rate hike, Chan said it was hard to predict whether the Fed would increase the interest rate next month but he expected that it would not be rapid so the speed for capital outflow in Hong Kong should not be too fast.

As for the local property market, Chan said low-interest environment in the United States had been one of the main reasons leading to the overheated property market in the past few years.

Therefore, he said, those who are looking to taking mortgage loans should assess their repayment ability and be aware when interest rates normalize and the property cycle turns. Endi