Hong Kong Monetary Authority responds to Federal Reserve's interest rate decision: Continue closely monitoring market changes to maintain monetary and financial stability

Gold Finance reports that on April 30, the U.S. Federal Reserve’s Federal Open Market Committee announced this morning, according to Hong Kong time, that it will maintain the target range for the federal funds rate at 3.50–3.75厘. The Fed’s decision to keep interest rates unchanged is in line with market expectations. The market generally believes that there is considerable uncertainty about the future direction of U.S. monetary policy, which will depend on the inflation outlook and conditions in the employment market. In particular, the persistent tension in the Middle East continues to keep oil prices high, and the impact on U.S. inflation remains to be seen. In Hong Kong, the monetary and financial markets continue to operate in an orderly manner. Under the linked exchange rate system, Hong Kong dollar interbank offered rates (HIBOR) are overall trending toward U.S. dollar rates, while shorter-tenor HIBOR is also simultaneously affected by local market supply and demand for Hong Kong dollar funds, such as seasonal factors and capital market activity. Uncertainty about the future path of U.S. interest rates will also affect Hong Kong’s interest rate environment. Members of the public should fully consider and manage interest rate risk when making decisions on home purchases, investments, or borrowing. The Hong Kong Monetary Authority will continue to closely monitor market developments to maintain monetary and financial stability. (East New Agency)