21st September 2023 – (Hong Kong) The Hong Kong Monetary Authority (HKMA) has issued a response following the announcement by the Federal Open Market Committee of the United States Federal Reserve (Fed) regarding its interest rate decision.
In line with market expectations, the Fed has chosen to maintain the target range for the federal funds rate at 5.25-5.5 percent following its two-day meeting. The Fed emphasized that future interest rate adjustments will depend on the latest economic data and the impact of previous rate hikes on the economy over the past year. It is therefore premature to determine whether the rate hike cycle in the US has concluded, and the current high interest rate environment is expected to persist for some time.
Despite these developments, Hong Kong’s financial and monetary markets continue to operate smoothly and efficiently. The exchange rate of the Hong Kong dollar remains stable, although interbank rates in the Hong Kong dollar market may remain elevated for an extended period. In light of this, the public is advised to carefully evaluate and manage risks when making decisions regarding property purchases, mortgages, or other borrowing activities. The HKMA reassures the public that it will closely monitor market developments and uphold monetary and financial stability.