New | Financial Secretary expects ‘rainy days’ after US Fed cools talk of interest rate hike

Hong Kong’s economy would have its share of “rainy days” over the next financial year, the city’s finance chief said, after comments by the US Federal Reserve cooled expectations of an early hike in interest rates.

Speaking today at an annual luncheon hosted by the business community on his eighth budget, Financial Secretary John Tsang Chun-Wah said it was unlikely Hong Kong would enjoy a “sunshine sprint to the year-end finish line”.

“Rather, this year, like last year, will likely have it shares of cloud storms and rainy day challenges – even more so,” Tsang said.

Fed chairwoman Janet Yellen on Wednesday said that the US central bank had decided to drop its pledge to be “patient” before raising rates – opening the door to a rate hike as early as June – only to stress that the move did not mean that it would be “impatient”.

Tsang said that did not help to answer questions over the time and pace of a rate rise.

“Janet Yellen’s statement last night did not make the position clearer than before,” Tsang said.

“Removing the word “patience” does not mean the Fed has now become impatient.”