Second, it is also important to implement measures from a prudential policy perspective. In this regard, the Hong Kong Monetary Authority (HKMA) has sounded a warning since last year about the rapid increase in real estate prices, implementing a variety of policy measures, such as the lowering of the Loan-to-Value (LTV) ratio.
These macro-prudential measures are particularly essential for Hong Kong, where a fixed foreign exchange rate regime has been adopted. An issue currently of global importance is how to design macroprudential measures appropriate to the situation of each domestic economy and to the degree of development in financial markets. IV.