Great expectations: Acting Chief Executive Henry Tang says the long-term prospects for Hong Kong's economy and property market are still positive, despite the recent interest-rate surge.

Despite the recent interest-rate rise, the long-term prospects for Hong Kong's economy and property market are still positive, Acting Chief Executive Henry Tang says.

Speaking after the launch of the Safety Partnering Programme today, Mr Tang said Hong Kong's interest rate has a direct relation with US' interest rate.

Although local interest rates have recently increased, Hong Kong's economic situation and property market are still healthy.

Mr Tang stressed the forecast of GDP growth for 2005 is unchanged at 4.5% to 5.5%.

When asked whether the interest-rate rise will have a negative effect on home buyers' sentiment, Mr Tang said the interest rate is only one of many factors for home buyers to consider.