The Hong Kong Monetary Authority said the Fed’s decision to hold rates met market expectations and Hong Kong money and financial markets remain orderly. A persistent wide HKD‑USD interest-rate differential means carry trades could gradually weaken the HKD; the HKD exchange rate and HIBOR path face material uncertainty, depending on market appetite for carry, HKD funding supply/demand from capital-market activity and seasonal factors. US policy rates remain uncertain and will depend on inflation,

The Hong Kong Monetary Authority said the Fed’s decision to hold rates met market expectations and Hong Kong money and financial markets remain orderly. A persistent wide HKD‑USD interest-rate differential means carry trades could gradually weaken the HKD; the HKD exchange rate and HIBOR path face material uncertainty, depending on market appetite for carry, HKD funding supply/demand from capital-market activity and seasonal factors. US policy rates remain uncertain and will depend on inflation, the labour market and incoming data, which will affect Hong Kong’s rate environment. Market participants should factor and manage interest-rate risk for property, investment and borrowing decisions. HKMA will continue to monitor markets closely to maintain monetary and financial stability.