HONG KONG (Reuters) -The Hong Kong Financial Authority (HKMA) minimize by 25 foundation factors on Friday its base charge charged by way of the in a single day low cost window, to five.0%, monitoring a transfer by the U.S. Federal Reserve.
The Asian monetary hub’s financial coverage strikes in lock-step with the USA as its foreign money is pegged to the buck in a good vary of seven.75 to 7.85 a greenback.
“The pace of future rate cuts remains uncertain as it is subject to U.S. economic data, which will be influenced by fiscal, economic and trade policies,” the HKMA stated in a press release.
The Fed minimize charges by 1 / 4 of a share level on Thursday because it started taking inventory of what may turn out to be a extra complicated financial panorama when President-elect Donald Trump takes workplace subsequent 12 months.
Fed Chair Jerome Powell stated the outcomes of Tuesday’s presidential election would don’t have any “near-term” impression on U.S. financial coverage.
The HKMA stated the U.S. rate-cut cycle was nonetheless at an preliminary stage and the choice to chop charges wouldn’t have an effect on Hong Kong’s monetary and financial stability.
The monetary and financial markets had continued to function in a easy and orderly method, it added.
“Interest rates might still remain at relatively high levels for some time,” the HKMA stated, urging cautious evaluation and administration of the rate of interest danger when making property buy, mortgage or different borrowing selections.
