The Monetary Authority's Chief Executive, Eddie Yue Wai-man, stated that the USA Federal Reserve has announced a rate cut of 0.25%, which aligns with market expectations. However, the dot plot has lowered the forecast for rate cuts next year, reflecting that the pace and extent of the USA's rate cuts still have variables, depending on the trends in USA economic data.

In Hong Kong, Eddie Yue Wai-man indicated that the operation of the financial and MMF markets is smooth, market liquidity is stable, and the Hong Kong dollar is stable. Under the linked exchange rate system, the interbank rate will be close to the USA's interest rates, and the short-term interbank rates are influenced by the local market's supply and demand for Hong Kong dollar funds. Currently, it is close to year-end, and capital market activities are relatively vigorous, with a higher demand for funds. Banks will evaluate whether to adjust interest rates based on interbank funding supply and demand, interbank rate levels, and funding cost structures.

He reminded that interest rates may remain at a relatively high level for the foreseeable future, and there is significant uncertainty. Citizens should be cautious in managing risks when it comes to property purchases and mortgages.