The Hong Kong Monetary Authority announced that after a series of two meetings, the Federal Reserve released this morning in Hong Kong time that the target range for the federal funds rate remains at 4.25-4.5%. In Hong Kong, the financial and monetary market operations remain smooth, market liquidity is stable, and the HKD exchange rate is stable. Under the currency board system, the HKD interbank rates are generally approaching the USD rates, while shorter-term interbank rates are simultaneously influenced by local market supply and demand for HKD funds, and Hong Kong interest rates may remain at a relatively high level for the foreseeable future.
The Federal Reserve's decision to maintain the interest rate was in line with market expectations. However, the pace of future interest rate cuts still has many variables, depending on the trends in US inflation and employment data, the effects of previous interest rate cuts, and the impact of the new government's fiscal and economic trade policies on economic activity.
The Hong Kong Monetary Authority reminds that Hong Kong interest rates may remain at a relatively high level for a visible period of time, while the magnitude and pace of future interest rate cuts in the USA have considerable uncertainty. Citizens should continue to carefully consider and manage interest rate risks when making decisions regarding property purchases, mortgages, or other borrowing. The Hong Kong Monetary Authority will continue to closely monitor market changes to maintain currency and financial stability.
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