Yu Weiwen, Chief Executive of the Hong Kong Monetary Authority: Financial market operations remain normal Remind the public to be aware of interest rate risks

The Zhitong Finance App learned that on September 17, Yu Weiwen, CEO of the Hong Kong Monetary Authority, published an article stating that the US Federal Reserve (Federal Reserve) Federal Open Market Committee announced an interest rate hike of 25 basis points early this morning Hong Kong time, that is, raising the federal funds rate target range to 3.75-4%. The HKMA raised the basic interest rate for the discount window to 4.25% in accordance with the established mechanism, with immediate effect.

The Federal Reserve's interest rate hike this time is in line with market expectations. A statement issued after the meeting said that the economy continues to grow and the job market remains stable, but inflation is still at a high level. The decision to raise interest rates this time reflects the Committee's concerns about the outlook for inflation.

On the Hong Kong side, the currency and financial markets operate in an orderly manner. Interest spreads between Hong Kong and the US widened further, and there is an opportunity for arbitrage trading to gradually weaken the Hong Kong dollar. There are many variables in the trend of Hong Kong's foreign exchange and interest rates. In particular, they are affected by interest spreads between Hong Kong and the US, the supply and demand of Hong Kong dollar capital, such as capital market activity, and other seasonal factors.

As for interest rates on deposits and loans, banks generally consider factors such as the supply and demand of capital in the interbank market, interest rates and current relevant interest rate levels, and their own capital cost structure to assess whether adjustments are needed and the extent of the adjustments.

Changes in US interest rates are highly uncertain. They will depend on inflation trends, job market conditions, and other economic data. They will also have an impact on Hong Kong's interest rate environment. The public should fully consider and manage interest rate risks when making decisions to buy, invest, or borrow. The HKMA will continue to closely monitor market changes to maintain monetary and financial stability.