01925cas a2200241 a 4500 AALejournalIMF016644 230101c9999 xx r poo 0 0eng d 5.00 USD 9781498376402 1018-5941 BD-DhAAL BD-DhAAL Kang, Joong. Private Sector Activity in Hong Kong SAR and the Fed : Transmission Effects through the Currency Board / Joong Kang. Washington, D.C. : International Monetary Fund, 2016. 1 online resource (15 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students As the U.S. Fed begins to increase the Federal Funds rate, interest rates in Hong Kong SAR will rise in tandem under the Currency Board system. While domestic economic activity in Hong Kong SAR remained resilient in previous rate hike cycles, there is a concern that the impact of higher interest rates would be larger this time due to historic high levels of leverage in both household and corporate sectors. However, macroprudential measures have contained the debt service burden among new borrowers and leverage quality of corporate sector is healthier than its peers in the region. Empirical estimations of aggregate consumption and corporate investment show that private domestic demand is likely to remain robust with the anticipated gradual increase in interest rates over the next few years and taking into account the buffers in the system. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2016/035 Full text available on IMF http://elibrary.imf.org/view/journals/001/2016/035/001.2016.issue-035-en.xml IMF e-Library