© 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 charge charged by way of the in a single day low cost window unchanged at 5.75%, monitoring a transfer by the U.S. Federal Reserve that saved charges regular.
HSBC Holdings (NYSE:) additionally mentioned it saved its greatest lending charge in Hong Kong unchanged at 5.875%.
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 usually interpreted the Fed’s charge determination as rates of interest nearing the height, with a barely bigger extent of charge 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 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 selections on property purchases, mortgages or different borrowing.
Hong Kong’s financial coverage strikes in lock-step with the US as town’s forex is pegged to the buck in a decent vary of seven.75-7.85 per greenback.