HK worries on negative interest rates
Years of a negative interest rate before the onset of the Asian financial crisis in 1997 pushed Hong Kong property prices to levels that were widely considered to be unaffordable and unsustainable. The subsequent implosion of the asset bubble, marked by a 60 percent fall in property prices in two years after 1997, cracked the foundation of the domestic economy, which had remained in the doldrums for six long years.
Hong Kong people may be excused for their short memories as they count their blessings in the brisk economic recovery since 2003. But not our monetary chief Joseph Yam. In an essay at the website of the monetary authority, Yam wrote: "Generally speaking, negative real interest rates are an abnormal phenomenon that has implications for economic and financial stability. Given a choice, we'd prefer not to have negative interest rates."
I wish I knew what our excuse was.
PCE Measure of Shelter Slows Slightly to 5.8% YoY in March
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Here is a graph of the year-over-year change in shelter from the CPI report
and housing from the PCE report this morning, both through March 2024.
[image: ...
2 hours ago
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