The Record of Discussion of the Meeting of the Exchange Fund Advisory Committee Currency Board Sub-Committee held on 5 July are as follows. From 25 April to 25 June 2024, the Hong Kong dollar (HKD) traded between 7.7987 and 7.8294 against the US dollar (USD), strengthening briefly in late April to mid-May due to dividend-related demand and active equity markets, then stabilizing. HKD interbank rates tracked USD rates and remained stable, with the Aggregate Balance steady at around HK$45 billion and no unusual activity in the Discount Window. The Monetary Base rose to HK$1,917.51 billion, fully matched by foreign reserves. The Sub-Committee observed divergent policy actions among advanced economies, with some lowering rates while the US Federal Reserve maintained its stance. In Mainland China, economic recovery was uneven with strong external trade but weak domestic demand. In Hong Kong, economic growth continued, driven by exports and the tech sector, but faced uncertainties from US policy, global economic conditions, and geopolitical tensions. The residential market showed activity but cautious sentiment, while the commercial real estate market remained weak. For details, please refer to the HKMA website.
Resources: https://www.hkma.gov.hk/eng/news-and-media/press-releases/2024/08/20240816-5/