Norman T.L. Chan, Chief Executive, Hong Kong Monetary Authority
While the FOMC decided not to raise policy interest rate last night, it is worth noting that 13 out of 17 members of FOMC expected a lift-off within this year. So it is important that we should not think that the ultra low interest rate environment will last indefinitely.
In terms of Hong Kong’s property market, the disconnect between the purchasing power of our citizens and the high valuation has become very serious for quite some time. With the recent slowdown of the Mainland and Hong Kong economies, it is important that buyers of property take into full account of the fact that the ultra low mortgage interest rates will not last forever. They should carefully assess their income levels and repayment ability when they take out mortgage loans, so as to avoid running into financial difficulties when interest rates normalise and the property cycle turns.