Richard Yu: The Hong Kong dollar interest rates remain at a relatively high level in the short term
The President of the Hong Kong Monetary Authority, Richard Yu, stated that the Hong Kong dollar interest rates remain at a relatively high level in the short term, influenced by seasonal factors and capital market activities. The Federal Reserve's interest rate cuts and economic measures in the mainland have a positive effect on the Hong Kong economy, but the outlook still faces geopolitical uncertainties. Citizens should manage risks cautiously when purchasing property, taking out mortgages, or borrowing, and the Monetary Authority will continue to monitor market changes and support financing for small and medium-sized enterprises
According to the Zhitong Finance APP, Eddie Yu, the President of the Hong Kong Monetary Authority, stated at the Financial Affairs Committee meeting that there are still many uncertainties regarding the Federal Reserve's future interest rate cuts. He expects the market to be highly sensitive to various economic data and political risks, and investors should be aware of the risks of market volatility. Under the linked exchange rate system, a reduction in U.S. interest rates provides room for a decline in Hong Kong interest rates, but in the short term, Hong Kong interbank offered rates will be influenced by seasonal factors and capital market activities.
He continued to point out that the Federal Reserve's interest rate cuts and the economic stimulus measures from mainland China have a positive effect on Hong Kong's economy. However, the economic outlook for Hong Kong still faces uncertainties such as geopolitical situations. He also mentioned that Hong Kong dollar interest rates will remain relatively high in the short term, and interest rates are not the only factor affecting the development of the Hong Kong property market; other important factors include housing supply and demand. Citizens should carefully consider and manage risks when making decisions about property purchases, mortgages, or other borrowing.
He mentioned that the Hong Kong Monetary Authority will continue to closely monitor changes in the financial and monetary markets and further promote support for small and medium-sized enterprises' bank financing through the "SME Financing Task Force."