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Tue, Sep 18, 2001 - Page 21 News List

Rate cuts in the US may not help recovery in Asia

REGIONAL ECONOMY Further reductions in interest rates by the US Federal Reserve are not likely to provide a boost because Asian banking institutions are still weak

REUTERS , HONG KONG

But even here, the impact is expected to be mild.

"Even if the reduction in rates helps people's mortgage burden, the fear of losing their jobs means that they won't spend more," said Daniel Chan, senior economist at Dao Heng Bank.

In Hong Kong, as in other Asian countries, the key in the short term will be how US share markets react when they re-open.

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