The Federal Reserve’s Federal Open Market Committee has decided to keep the federal funds rate unchanged at 5.25-5.5%. Future rate decisions will depend on incoming data, outlook, and risk balance. While inflation pressure in the US has decreased, the market anticipates a possible rate cut as early as September, although the pace of any easing remains uncertain. Meanwhile, Hong Kong’s financial markets continue to function smoothly, with the Hong Kong dollar exchange rate remaining stable. Interbank rates in Hong Kong will remain relatively high, and the future rate path is uncertain. The Hong Kong Monetary Authority advises the public to carefully assess risks when making financial decisions and will continue to monitor market developments to ensure stability.
Resources: https://www.hkma.gov.hk/eng/news-and-media/press-releases/2024/08/20240801-3/