HKMA’s Response to US Fed’s Interest Rate Decision

The Federal Reserve has lowered the federal funds rate by 0.25% to 4.5-4.75%, while the Hong Kong Monetary Authority (HKMA) reduced its Base Rate to 5%. The Fed’s rate cut aims to ease monetary policy, but future cuts depend on US economic data and global economic factors. Despite these changes, Hong Kong’s financial markets remain stable, with liquidity and the Hong Kong dollar exchange rate holding steady. Banks will assess funding conditions and interbank rates when adjusting deposit and lending rates. The HKMA continues to monitor global financial trends to maintain stability, with no immediate impact on Hong Kong’s financial security. Source: https://www.hkma.gov.hk/eng/news-and-media/press-releases/2024/11/20241108-4/