Global EditionASIA 中文雙語Fran?ais
    HongKong Business

    Warning for investors - cheap credit may soon be over

    HK Edition | Updated: 2017-10-20 06:17
    Share
    Share - WeChat

    The US economy has been growing at a brisk pace for almost a year, creating enough new jobs to push the unemployment rate to its lowest level since the outbreak of the credit crisis in 2008.

    The European Union's economy has also found a firm footing, while the Japanese economy is showing signs of sustainable health after a period of seesawing between anemic progress and outright recession.

    The latest developments in the global economy should be closely watched in Hong Kong, whose externally-oriented economy is particularly sensitive to changes in prices of capital and goods. Instead of indulging in the eerie sense of security, investors need to be aware that the asset-price inflation, or bubble, can be short-circuited by a sudden contraction of liquidity, accompanied by rising borrowing costs.

    The warning signs have become increasingly apparent. Despite the fall in unemployment in nearly all the developed economies, inflation has remained surprisingly low. But, with the demand for workers picking up in the US and the major EU economies, including Germany and the United Kingdom, economic planners are expecting a rise in average wages.

    When wages start rising, can inflation be far behind? The world's top central bankers predict that inflation will not stay at its current low level for much longer, according to a Bloomberg report. Federal Reserve Chair Janet Yellen has said she expects consumer prices to accelerate soon.

    Her "best guess", as she put it, on prices was shared by some of the top central bankers, including European Central Bank President Mario Draghi and Bank of England Governor Mark Carney at the International Monetary Fund's annual meetings last weekend in Washington.

    Yellen reiterated that the strength of the US economy will "warrant gradual increases" in interest rates. Indeed, the market has been expecting the Fed to hike rates at its next policy meeting in December.

    Bloomberg reported that Draghi had said he's "confident" that the inflation rate will soon surge from the 1.5 percent recorded in September. He's widely expected to reveal a bond-buying plan later this month, signifying an end to the loose monetary policy that has been in place since the Great Recession.

    Earlier this month, the Hong Kong Monetary Authority -the city's de facto central bank - initiated a program to reduce excessive liquidity in the banking system with the aim of facilitating a steady and progressive increase in interest rates. It should also signal that the flush of cheap credit into the asset market may be coming to an end sooner than investors have expected.

    (HK Edition 10/20/2017 page19)

    Today's Top News

    Editor's picks

    Most Viewed

    Top
    BACK TO THE TOP
    English
    Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
    License for publishing multimedia online 0108263

    Registration Number: 130349
    FOLLOW US
    日韩人妻无码精品专区| 欧日韩国产无码专区| 久久亚洲中文字幕精品一区| 精品亚洲成A人无码成A在线观看 | 国产精品亚洲а∨无码播放| 最近中文字幕大全免费版在线| 亚洲AV无码日韩AV无码导航 | 人妻丝袜中文无码av影音先锋专区| 日韩AV无码中文无码不卡电影| 中文字幕精品一区| 熟妇人妻无码中文字幕| 波多野结AV衣东京热无码专区| 国产品无码一区二区三区在线蜜桃 | 中文字幕久久欲求不满| 无码av不卡一区二区三区| 精品无码国产一区二区三区AV| 欧美日韩不卡一区二区三区中文字| 亚洲爆乳无码精品AAA片蜜桃| 99热门精品一区二区三区无码| 一本色道无码道在线观看| 无码人妻丰满熟妇区96| 中文字幕在线观看国产| 久久中文精品无码中文字幕| 欧美日韩中文字幕久久伊人| 中文精品久久久久人妻不卡| 亚洲精品一级无码鲁丝片| 久久久久亚洲AV无码专区桃色| 国产成人无码精品一区二区三区| 亚洲av激情无码专区在线播放| 最新中文字幕AV无码不卡| 亚洲色无码一区二区三区| 亚洲国产精品无码中文字| 无码专区—VA亚洲V天堂| 亚洲av无码乱码国产精品| 西西午夜无码大胆啪啪国模| 无套内射在线无码播放| 无码专区—VA亚洲V天堂| 国产AV无码专区亚汌A√| 无码精品前田一区二区| 中文字幕人妻色偷偷久久 | 无码人妻精品一区二区三区蜜桃|