Hong Kong Monetary Authority responds to Federal Reserve interest rate decision
2025-07-31 13:15:42 Primitive Reading

 the Hong Kong Monetary Authority responded to the Federal Reserve's interest rate decision, stating that the Federal Reserve's decision to maintain interest rates unchanged is in line with market expectations. Currently, the Hong Kong-US interest rate differential still makes carry trade attractive, hence keeping the Hong Kong dollar close to the 7.85 level. However, at the same time, there has been strong demand for Hong Kong dollar funds related to stocks recently, providing some support for the Hong Kong dollar. Depending on changes in the supply and demand of Hong Kong dollar funds in the future, as well as other uncertainties including the Federal Reserve's monetary policy and interest rate trends, the sentiment in the stock investment market, external financial markets, and global capital flows, the "weak-side exchange rate guarantee" may be triggered again.

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