Record of Discussion of the Meeting of the Exchange Fund Advisory Committee Currency Board Sub-Committee held on 30 October 2024

During the review period (26 June – 18 October 2024), the Hong Kong dollar (HKD) traded within a stable range against the US dollar, supported by reduced carry trades, stronger equity demand, and improved local market sentiment due to Mainland China’s economic stimulus measures. HKD interbank rates mirrored US rates while responding to local liquidity dynamics. The HKMA extended Real Time Gross Settlement (RTGS) system hours temporarily to accommodate increased payment flows. The Monetary Base rose to HK$1,938.33 billion, fully backed by foreign reserves, while the Best Lending Rates dropped after a US federal funds rate cut. Global markets saw brief volatility due to US recession fears and geopolitical tensions, while China’s economy slowed despite stimulus efforts. Hong Kong’s economy grew moderately, driven by strong goods exports and recovering tourism, though local consumption and commercial property markets remained under pressure. The Sub-Committee also reviewed changes in major economies’ monetary policy frameworks.

Resources: https://www.hkma.gov.hk/eng/news-and-media/press-releases/2024/12/20241209-3/