US rates decision in line with expectations: HKMA

The Hong Kong Monetary Authority said a decision by the US Federal Reserve to keep interest rates unchanged was in line with market expectations.

Overnight, the Fed held the target range for federal funds rate steady at 3.5 to 3.75 percent for the fifth straight meeting.

It said economic activity was expanding in solid pace and labour market was stable, but inflation remained elevated.

In a statement, the Monetary Authority said the SAR's monetary and financial markets have continued to operate in an orderly manner.

The authority said Hong Kong dollar interbank rates generally track the US dollar counterparts under the Linked Exchange Rate System, yet shorter-tenor interbank rates tend to also be influenced by the supply and demand of currency funding in the local market such as seasonal factors and capital market activities.

It urged the public to carefully manage interest rate risks when making decisions about property purchase, investment or borrowing, as rate adjustments in the US may influence the interest rate environment in Hong Kong.

The authority said it will continue to closely monitor market developments to maintain monetary and financial stability.

Edited by Edmond Fong ...