The Hong Kong Monetary Authority said the Fed’s decision to hold rates met
market expectations and that inflation remains elevated, reflecting
policymakers’ concerns. Hong Kong money and financial markets remain orderly.
Under the Linked Exchange Rate System HKD interbank rates broadly track USD
rates, but short-term Hibor can diverge due to local HKD liquidity conditions
such as seasonality and capital-market activity. US policy moves will depend on
inf, employment and other data and will affect Hong Kong’s rate environment;
market participants should factor rate risk into property, investment and
borrowing decisions. HKMA will continue to monitor markets closely to maintain
monetary and financial stability.
