HONG KONG, June 15 Hong Kong's central bank
chief said on Thursday he expects banks in the city to raise
interest rates gradually and there could be an increase in
capital outflows from the financial hub due to arbitrage plays
with the local currency.
Hong Kong Monetary Authority (HKMA) chief executive Norman
Chan, speaking after the U.S. Federal Reserve raised interest
rates, also warned residents to tread cautiously in the property
market as mortgage repayments were likely to increase.
The Hong Kong Monetary Authority on Thursday raised the base
rate charged through its overnight discount window by 25 basis
points to 1.50 percent.
The Hong Kong dollar is pegged to the U.S. dollar and the
HKMA tends to follow monetary policy set by the U.S. Federal
(Reporting By Donny Kwok and James Pomfret; Editing by Kim