Following the Fed’s decision, the Hong Kong Monetary Authority (HKMA) left its key base rate unchanged at 4.75 percent.
The HKMA said in a statement the Fed’s decision was in line with market expectations, as a series of US tariff measures further increased uncertainty about US inflation and economic growth outlook.
“The markets are expected to focus on developments relating to US tariff measures and the US interest rate path, both of which are subject to considerable uncertainty,” the statement said.
“Global financial markets would inevitably be affected and exhibit volatility. The public should carefully assess and manage risks when making property purchase, investment or borrowing decisions.”
The HKMA added that the city’s monetary and financial markets have continued to operate in an orderly manner, while noting the recent strengthening of the Hong Kong dollar which was driven mainly by equity-related demands and a decline in the US dollar.
HSBC and Bank of China (Hong Kong) kept their prime lending rates steady at 5.25 percent, and it’s 5.5 percent at Standard Chartered.
Their deposit rates also remained unchanged.
