Market decision: Financial Secretary Henry Tang says there is no interest rate control and banks can adjust rates according to their own situation.

Divergence among banks on interest rate adjustment only reflects market needs and will not affect Hong Kong's monetary system, Financial Secretary Henry Tang says, adding that the banks' decisions are market-led.

The US Federal Reserve recently raised its key federal funds rate. Local banks reacted differently to the move. Some lowered their interest rates while others left their rates unchanged

Mr Tang said there is no interest rate control and banks can adjust their rates according to operational costs and sources of funds. Despite the Hong Kong-US dollar peg, the banks' move will not affect the stability of Hong Kong's monetary system.

He also warned consumers to assess their budget before buying property as the interest rate cut is rather marginal.