The Federal Reserve raised the target range for the federal funds rate to 4.75-5%, resulting in the Hong Kong Monetary Authority (HKMA) adjusting the Base Rate upward to 5.25% in accordance with established mechanisms. The Fed’s decision was expected, but uncertainties remain on the interest rate path in the US, and the impact of past rate hikes on the economy and inflation is still being assessed. Hong Kong’s financial and monetary markets are stable despite overseas market volatility. The strong financial market, reliable banking system, and effective Linked Exchange Rate System contribute to this stability. The HKMA will maintain monitoring and stability, but individuals should be aware of potential changes in lending rates due to high interbank rates.
resource: https://www.hkma.gov.hk/eng/news-and-media/press-releases/2023/03/20230323-4/