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Record of Discussion of the Meeting of the Exchange Fund Advisory Committee Currency Board Sub-Committee held on 8 January 2025
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The Exchange Fund Advisory Committee Currency Board Sub-Committee reviewed the Currency Board operations from 19 October to 24 December 2024, noting that the Hong Kong dollar (HKD) traded between 7.7656 and 7.7848 against the US dollar (USD), with a slight decline in November followed by a recovery in December. Interbank rates aligned with USD trends, leading to a reduction in Best Lending Rates by 37.5 basis points, ranging from 5.25% to 5.75%. The Aggregate Balance remained stable at approximately HK$45 billion, while the Monetary Base rose to HK$1,958.14 billion, matched by foreign reserves. The Sub-Committee highlighted increased uncertainties due to the incoming US administration’s policies, impacting global economic stability and Hong Kong’s moderate growth outlook for 2025, despite recent improvements in the housing market and ongoing concerns in the commercial real estate sector. Resources: https://www.hkma.gov.hk/eng/news-and-media/press-releases/2025/02/20250219-4/
