Hong Kong Monetary Authority: There is great uncertainty about the future direction of US monetary policy.

On the morning of March 19, the Federal Open Market Committee of the Federal Reserve announced to maintain the federal funds rate target range at 3.50-3.75%. The Hong Kong Monetary Authority stated that the decision of the Federal Reserve to keep interest rates unchanged was in line with market expectations. The post-meeting dot plot indicates that the Federal Reserve may cut interest rates by another 25 basis points by 2026, but there is considerable uncertainty in the future monetary policy of the United States, especially with the recent tensions in the Middle East affecting oil prices and US inflation. In Hong Kong, the currency and financial markets continue to operate in an orderly manner. The Hong Kong dollar interest rates under the Linked Exchange Rate System generally track the US dollar interest rates, while short-term interest rates are influenced by local market supply and demand factors, such as seasonal factors and capital market activities. The future direction of US interest rates is uncertain, which could also affect Hong Kong's interest rate environment. When making decisions on property purchases, investments, or borrowing, residents should carefully consider and manage interest rate risks. The Hong Kong Monetary Authority will continue to closely monitor market changes to maintain currency and financial stability.