
Hong Kong Central Bank Keeps Interest Rate Steady, Following Fed’s Lead – Reuters
HONG KONG – The Hong Kong Monetary Authority (HKMA) announced on Thursday that its base rate, set through the overnight discount window, remains unchanged at 5.75%. This decision aligns with the U.S. Federal Reserve’s recent move to maintain steady interest rates.
On Wednesday, the U.S. central bank decided to pause its monetary tightening measures to evaluate whether current economic conditions are sufficient to control inflation.
HSBC Holdings has also opted to keep its best lending rate in Hong Kong at 5.875%. The HKMA noted that it is too early to determine if the United States has completed its rate hike cycle, suggesting that the existing high-interest rate environment may persist for a while longer.
"The Hong Kong dollar exchange rate remains stable, and the local interbank rates are likely to stay elevated for some time," stated the HKMA, emphasizing that financial and monetary markets in the region continue to operate smoothly.
The HKMA advised the public to carefully evaluate and manage risks when making decisions regarding property purchases, mortgages, or other forms of borrowing.
Hong Kong’s monetary policy closely mirrors that of the United States due to the currency peg, which maintains the Hong Kong dollar within a tight range of 7.75-7.85 per U.S. dollar.