HKMA responds to Fed's interest rate decision: Hong Kong's monetary and financial markets continue to operate in an orderly manner

Zhito Finance APP has learned that the Federal Open Market Committee of the Federal Reserve announced in the early morning of today (October 29) Hong Kong time that it would maintain the target range for the federal funds rate at 3.75-4%. The Fed's decision to keep interest rates unchanged was in line with market expectations. The statement issued after the meeting said that economic activity grew strongly and the labor market remained stable; inflation remains at a relatively high level, reflecting the Committee's attention to the inflation outlook, but it may take a longer period to observe changes in the data. In Hong Kong, the monetary and financial markets have maintained orderly operation. A notable interest rate spread between the Hong Kong dollar and the US dollar persists, and carry trades may gradually weaken the Hong Kong dollar, but there are many variables in the direction of the Hong Kong dollar exchange rate and interbank rates, such as the market's appetite for carry trades, and the supply and demand of Hong Kong dollar funds, including capital market activities and other seasonal factors.