HKMA retains base rate at 5.75%

The move was in response to the Fed holding its interest rates steady.

The Hong Kong Monetary Authority (HKMA) has retained its base rate at 5.75% in response to the US Fed’s decision to keep its target range for the federal funds rate unchanged at 5.25%-5.5%.

“The policy decision this time is generally in line with market expectations.  The Fed stressed that its future interest rate decisions would continue to be dependent on the latest economic data and the impact of continual rate hikes during the past year on the economy,” the central bank said.

“It is therefore premature to conclude whether the US rate hike cycle has been completed, and the high-interest rate environment is likely to last for some time,” it added.

HKMA, meanwhile, warned that Hong Kong dollar interbank rates might remain high for some time and advised the public to “carefully assess and manage the relevant risks when making a property purchase, mortgage or other borrowing decisions.”