Market reaction to monetary operation changes : the behavior of Hong Kong interest rates

市場對財政操作變化的反應 : 香港利率的行為

Student thesis: Master's Thesis

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  • Weiting ZHU

Related Research Unit(s)


Awarding Institution
  • Tom VINAIMONT (Supervisor)
  • Douglas Streeter ROLPH (Supervisor)
Award date15 Feb 2011


This paper examines the impact of Hong Kong's monetary policy, especially focusing on the HKMA's decision of their operation in the foreign exchange market and the response of money market interest rate. We find that the change of HKMA’s forecast for future operation in the foreign exchange market indeed impacts the interest rates. Second, the market reacts for this change in one day and this impact does not persist in the future. Last but not least, the reactions of interest rates for different maturities are different. The middle term interest rates have the greatest responses, and the short term interest rates have smallest impacts.

    Research areas

  • Hong Kong, Interest rates, Monetary policy, Foreign exchange, China