The Hong Kong Monetary Authority responds to the Fed's interest rate decision.

[Hong Kong Monetary Authority Responds to Fed's Interest Rate Decision] The Hong Kong Monetary Authority responded to the Fed's decision to maintain interest rates unchanged, which aligns with market expectations. Currently, the interest spread between Hong Kong and the U.S. remains attractive for carry trades, keeping the Hong Kong dollar close to the 7.85 level. However, the recent demand for Hong Kong dollar funding related to stocks has been strong, providing some support for the HKD. Moving forward, it will depend on changes in the supply and demand for Hong Kong dollar funding, as well as other uncertain factors including the Fed's monetary policy and the direction of U.S. interest rates, the atmosphere in the stock investment market, external financial markets, and global capital flows. The "Weak Side Convertibility Guarantee" may be triggered again. At that time, the Hong Kong Monetary Authority will buy Hong Kong dollars and sell US dollars according to the linked exchange rate system, and the surplus in the banking system will decrease accordingly, while the Hong Kong interbank offered rate will gradually rise. There is considerable uncertainty regarding the extent and pace of future interest rate cuts by the United States, and the current interest rate environment in Hong Kong may also change due to the various factors mentioned above. Citizens need to fully consider the possibility of rising Hong Kong dollar interest rates when making decisions on property purchases, investments, or borrowing, and manage the related risks. The Hong Kong Monetary Authority will continue to closely monitor market changes to maintain monetary and financial stability. (Jin Shi)