But Moody’s sees an increasing chance that the banks will eventually have to adjust upward, pushing up borrowing costs for customers. Financial Secretary Paul Chan highlighted those concerns last month when the HKMA raised its benchmark rate.... That means jobless homeowners would likely be the most affected by rising rates, Tso added. Even so, the financial stress on homebuyers capable of repaying their mortgage loans is significant.... The average mortgage amount in the city has been rising

Things could get very volatile and systems could break before people get used to quantitative tightening.... However, economists at DBS Bank Ltd predict one-month interbank rates will be around 200 basis points higher than current levels by year-end.As a small and open economy, Hong Kong is especially vulnerable to money flowing in and out.... It was hit hard by the Asian financial crisis that started in Thailand in 1997 and spread across the region, forcing the HKMA to buy Hong Kong stocks an