Business
Monetary Easing Cycle: A False Panacea for Hong Kong and Singapore’s Property Markets Amid Fed’s Rate Cut
Perspective | Federal's interest rate reduction unlikely to remedy troubles in Hong Kong or Singapore
Even with their numerous disparities, the real estate sectors in both Hong Kong and Singapore indicate that a cycle of relaxed monetary policy doesn't serve as an all-cure solution.
The Federal Reserve also indicated that additional cuts are on the horizon as it aims to prevent a more severe deceleration of the US economy. This bold policy change signifies the start of an extensive worldwide monetary loosening cycle, as fears of inflation are supplanted by worries over growth.
The property sector, which is highly responsive to changes in interest rates, is expected to significantly benefit from the softening of monetary policy. Morgan Stanley pointed out that Hong Kong stands in a unique position to gain from reduced US rates. However, despite its generally optimistic outlook on the city's housing market, it anticipates a mere 5% growth in housing prices in 2025 after a predicted drop of 8% this year.
Discover more from Automobilnews News - The first AI News Portal world wide
Subscribe to get the latest posts sent to your email.