Hong Kong Monetary Authority: It is expected that factors such as Hong Kong dollar funds supply and demand and overall liquidity will continue to affect Hong Kong dollar interest rates.

On May 8, the Hong Kong Monetary Authority responded to the decision of the Federal Reserve by stating that the currency and financial markets in Hong Kong are operating orderly. The Hong Kong dollar has strengthened recently, mainly due to increased demand for the Hong Kong dollar related to stock investments and the appreciation of regional currencies against the US dollar, triggering the "strong-side exchange rate guarantee" under the linked exchange rate system, with a rate of 7.75 Hong Kong dollars to 1 US dollar. The Hong Kong Monetary Authority has bought US dollars and sold Hong Kong dollars in the market according to the linked exchange rate system, leading to an increase in the banking system's overall surplus and an increase in Hong Kong dollar liquidity, causing interbank rates to fall slightly. It is expected that factors such as the supply and demand of Hong Kong dollar funds and overall liquidity will continue to affect interbank rates, especially for shorter-term rates. Public information shows that the Federal Open Market Committee of the Federal Reserve maintained the target range for the federal funds rate at 4.25-4.5 basis points after a two-day meeting, announced early this morning Hong Kong time. The Hong Kong Monetary Authority pointed out that the decision of the Federal Reserve to maintain interest rates unchanged was in line with market expectations. However, a series of recent tariff measures announced by the US government have added uncertainty to local inflation and economic prospects, prompting the Federal Reserve to adopt a more cautious stance on monetary policy. The changes in US tariff measures and the trend of US interest rates will be the focus of financial markets and are subject to significant uncertainty, potentially leading to fluctuations in global financial markets. When making decisions on property purchases, investments, or borrowing, citizens should carefully consider and manage risks. The Hong Kong Monetary Authority will continue to closely monitor market changes to maintain monetary and financial stability.