Global Markets
Home›Global Markets›China›HKMA keeps base rate at 4% after Fed holds key rate st…
HKMA keeps base rate at 4% after Fed holds key rate steady
The Fed ended its fifth FOMC meeting of the year with its target rate unchanged at 3.5% to 3.75%, and traders largely expected no move.
Hong Kong’s monetary authority kept its base rate unchanged at 4%, following the US Federal Reserve’s decision to hold its key policy rate steady, according to SCMP Economy.
The Fed retained its target rate range of 3.5% to 3.75% after concluding its fifth FOMC meeting this year, with the outlet noting that Fed Chairman Kevin Warsh reiterated there is no “soft” inflation target and that the committee’s target remains 2%.
Market expectations for the Fed decision were largely for inaction, with CME FedWatch data cited by SCMP Economy showing 67.9% of traders forecast no change, while the remainder expected a 25 basis point increase.
A managing director at T.O. & Associates Consultancy, Tommy Ong, said the lack of a US rate hike is slightly positive for Hong Kong’s real estate and stock market, but that any price gains may be limited due to uncertainty around upcoming US inflation readings, the outlet reported.