On November 8, 2024, the Hong Kong Monetary Authority (HKMA) reduced its base rate by 25 basis points to 5.0%. This HKMA rate cut follows the U.S. Federal Reserve's recent decision to lower interest rates. By aligning with the Fed, Hong Kong aims to maintain stability in its economy.
Hong Kong’s monetary policy typically mirrors that of the United States. The Hong Kong dollar is pegged to the U.S. dollar within a narrow range of 7.75–7.85 per dollar. As a result, the HKMA rate cut is necessary to keep the peg stable and to maintain the currency's value.
Borrowing costs in Hong Kong are likely to decrease. Consumers and businesses will benefit from lower rates on loans and mortgages. This can encourage spending and investment, helping to support growth across various sectors.
Going forward, the HKMA will continue to adjust its policies based on U.S. Federal Reserve actions and local economic conditions.
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The HKMA rate cut follows the U.S. Federal Reserve’s recent decision. Discover how the HKMA rate cut will impact Hong Kong’s economy
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