Hong Kong sees salvation from asset bubbles in weak currency

HONG KONG: Normally, when a currency is falling, a simple step exists to revive it: raising interest rates. But in Hong Kong there are no interest rates to raise, and that has created problems.

Hamstrung because it ceded monetary policy to the US Federal Reserve 35 years ago, the Asian financial hub has had no choice but to watch as a decade of radical stimulus by a foreign central bank sent money coursing across its borders. The inflows have jacked up prices on everything from apartments to car park spaces.