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

The Hong Kong Monetary Authority (HKMA) responded to the Federal Reserve’s decision to maintain the federal funds rate at 4.25-4.5%, aligning with market expectations while acknowledging uncertainty around future rate cuts based on US inflation, labor market data, and economic policies. HKMA noted that Hong Kong’s financial markets remain stable, with steady market liquidity and a stable Hong Kong dollar exchange rate under the Linked Exchange Rate System. However, it cautioned that interest rates in Hong Kong may remain high for some time, urging the public to carefully manage interest rate risks when making financial decisions. The HKMA will continue to monitor market developments to ensure monetary and financial stability. Resources: https://www.hkma.gov.hk/eng/news-and-media/press-releases/2025/01/20250130-3/