(From South China Morning Post)
Hong Kong's interest rates will eventually have to catch up with those of the United States, but any rise should be gradual, Hong Kong Monetary Authority chief executive Joseph Yam Chi-kwong said yesterday.
He said the local currency peg to the US dollar meant local rates should really be around the same level as those in the US. But there was still a significant gap and if rates went up too quickly, it would have an impact across all industries.
He said that if the US Federal Reserve decided to raise US rates at its meeting today, it was up to individual local banks to decide whether to adjust their deposit, loan …