HKMA: Wide HKD-USD Interest Rate Gap Persists

The HKMA flagging the rate gap is less about the number than about the mechanism it implies: a wide HKD-USD differential creates carry incentives that can pressure the weak side of the peg's convertibility band and pull local funding costs toward US levels. The authority's explicit nudge on interest rate risk signals it is watching how households and businesses are positioned for that pass-through. Whether the gap narrows on its own or forces more active HKMA intervention at the band's edge is the open question worth tracking.