Hong Kong’s financial secretary, Antony Leung Kam-chung, forecast that there will be a rebound in the economy there by next year, although companies are likely to continue slashing jobs, according to a report in the South China Morning Post‘s website.
Chief secretary, Donald Tsang Yam-kuen, also predicted the economy would “eventually find its legs and emerge stronger than ever,” according to the article.
The more optimistic forecasts come after a US Federal Reserve 25 basis point cut in borrowing rates prompted a reduction in lending and mortgage rates by two local banks in Hong Kong. However, commentators claim that rate cuts alone will be insufficient to get ailing businesses up to scratch again.
