Why a hawkish US Fed won’t derail Hong Kong’s property recovery

The Hong Kong Monetary Authority, the city’s de facto central bank, probably anticipated the rise in US interest rates last week.

However, it is unlikely it foresaw the extent to which the Federal Reserve shifted in a hawkish direction.

Even Fed watchers were surprised by the unanimous vote to increase borrowing costs and the unambiguous signal that the central bank plans to raise interest rates further in the coming months.

While the HKMA, which moves in lockstep with the Fed to safeguard the...