The Federal Reserve in the USA cut interest rates by 0.25%. The Monetary Authority stated that the Federal Reserve, as expected by the market, further lowered interest rates and implemented a looser monetary policy. However, the future rate cuts will depend on US economic data, which will be affected by fiscal and economic trade policies, hence there are still many variables. In addition, since the monetary policy environments of various major economies may not be completely synchronized, the risk of global market volatility is worth monitoring.

The Monetary Authority stated that the operation of Hong Kong's financial and capital markets remains smooth, market liquidity is stable, and the Hong Kong dollar exchange rate is stable. Hong Kong dollar interbank rates, under the linked exchange rate system, generally trend towards US dollar rates overall. However, shorter-term interbank rates are also influenced by local market demand and supply of Hong Kong dollars, such as seasonal factors and capital market activities.

The authority mentioned that in terms of deposit and loan interest rates, banks generally consider factors such as interbank market fund supply and demand, interbank rates, and their own funding cost structures when evaluating the need for adjustment and the extent of adjustment. The US interest rate reduction cycle is still in its early stages, and rates may remain at relatively high levels for a period of time. Citizens should continue to carefully consider and manage interest rate risks when making decisions on real estate, mortgages, or other borrowing.

The Monetary Authority pointed out that the decision to continue reducing interest rates will not affect the financial and monetary stability of Hong Kong. The Monetary Authority will closely monitor market changes, including interest rate trends and global capital trends, to ensure the stability of Hong Kong's financial and monetary systems.