The Hong Kong Monetary Authority backed the US Federal Reserve’s decision to keep interest rates on hold and reminded the public to carefully manage interest rate risk when making decisions about property purchases, investments, or borrowing.
Its statement came after the Federal Open Market Committee of the Federal Reserve announced its decision to keep the target range for the federal funds rate unchanged at 3.5-3.75 percent, noting that it aligns wth market expectations amid elevating inflation.
HKMA said the decision reflects the committee’s watchful outlook on inflation, and noted that Hong Kong dollar interbank rates generally track the US dollar counterparts under the Linked Exchange Rate System, while shorter-tenor interbank rates tend to be also influenced by the supply and demand of Hong Kong dollar funding in the local market, such as seasonal factors and capital market activities.
It also noted that US interest rate adjustments will depend on developments in inflation, the labor market, and other economic data, and may influence Hong Kong's interest rate environment.
Meanwhile, it said it will continue to closely monitor market developments and maintain monetary and financial stability.
