HKMA responds to Fed rate decision and stated the future trend of US interest rates is quite uncertain, while it added it will maintain monetary and financial stability

The HKMA's comments indicate a cautious stance on the uncertain trajectory of US interest rates, which could reflect broader concerns about global monetary policy.

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Says:

  • Will closely monitor market developments.
  • Hong Kong markets continue to operate in an orderly manner.
Context

Maintaining stability while monitoring market developments suggests they are ready to respond as needed, potentially influencing market sentiment in both fixed income and FX, especially regarding the HKD's peg to the USD.

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