© Reuters. A night view of the monetary central district of Hong Kong, China October 3, 2023. REUTERS/Tyrone Siu.file picture
HONG KONG (Reuters) – The Hong Kong Financial Authority (HKMA) on Thursday left its base fee charged by means of the in a single day low cost window unchanged at 5.75%, monitoring a transfer by the U.S. Federal Reserve to maintain charges regular.
The U.S. central financial institution left rates of interest unchanged on Wednesday and Fed chief Jerome Powell mentioned the historic tightening of financial coverage is probably going over as inflation falls quicker than anticipated and with a dialogue of cuts in borrowing prices coming “into view.”
HKMA mentioned the market typically interpreted the Fed’s fee resolution as rates of interest nearing the height, with a barely bigger extent of fee cuts subsequent yr than beforehand anticipated.
“There remains uncertainty in the interest rate path and the high interest rate environment may last for some time,” HKMA mentioned in an announcement, including the town’s monetary and financial markets proceed to function in a clean and orderly method.
“The Hong Kong dollar exchange rate remains stable, and the Hong Kong dollar interbank rates might remain high for some time,” HKMA mentioned, urging the general public to handle the related dangers when making property buy, mortgage or different borrowing choices.
Hong Kong’s financial coverage strikes in lock-step with the USA as the town’s foreign money is pegged to the dollar in a decent vary of seven.75-7.85 per greenback.
