Hong Kong Economy in Deep Water as Interest Rates Rise in Tandem With China and US Markets
The economy has been tense all over the world due to fuel and gas price increases, the ongoing war between Russia and Ukraine, and rampant inflation. In response to the high domestic inflation, the U.S. Federal Reserve increased the interest rate five times this year. Since Hong Kong’s system depends on the linked exchange rate to the U.S. dollar, Hong Kong had to follow suit.
However, the situation in Hong Kong differs from that in America. The interest rates have to climb even though the composite consumer price index has increased by only 1.9 percent.
Analysts believe that the economic relevance between Hong Kong and mainland China will rise, but it won’t be easy to synchronize with the steps of America and Europe….