Hong Kong financial and monetary markets have continued to operate in a smooth and orderly manner, market liquidity condition remains stable
[HONG KONG] The Hong Kong Monetary Authority (HKMA) left its base rate unchanged at 4.75 per cent on Thursday (Mar 20), in line with the US Federal Reserve’s decision to keep rates steady.
Hong Kong’s monetary policy moves in lock-step with the United States as the city’s currency is pegged to the greenback in a tight range of 7.75 to 7.85 per US dollar.
The Fed kept its benchmark overnight interest rate unchanged in the 4.25 to 4.5 per cent range, and maintained its projection for two quarter-point interest-rate cuts by year-end. The Fed also forecast slower economic growth and higher inflation.
“Interest rates in Hong Kong might still remain at relatively high levels for some time, and the extent and pace of future US interest rate cuts are subject to considerable uncertainty,” HKMA said on Thursday (Mar 20).
The public should manage the interest rate risk when making property purchase, mortgage or other borrowing decisions, it added.
Hong Kong financial and monetary markets have continued to operate in a smooth and orderly manner, market liquidity condition remains stable, and the Hong Kong dollar exchange rate remains steady, HKMA said. REUTERS
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