HKMA Lowers Base Rate to 5% Following Fed's 25 Basis Point Cut

2024-11-08 11:25 Last Updated At：11:38

HKMA's response to US Fed's Interest Rate Decision

The following is issued on behalf of the Hong Kong Monetary Authority:

The Federal Open Market Committee of the United States Federal Reserve (the Fed) just announced its decision to cut thetarget range for the federal funds rate by 25 basis points, to 4.5-4.75 per cent. The HKMA has reduced the Base Rate to 5 per cent according to the established mechanism with immediate effect.

The Fed further cut interest rates as expected by the market to implement less restrictive monetary policy. However, the pace of future rate cuts remains uncertain as it is subject to US economic data, which will be influenced by fiscal, economic and trade policies. Furthermore, monetary policies across the major economies are not entirely in sync. The risk of global financial market volatility should continue to be closely monitored.

Our financial and monetary markets have continued to operate in a smooth and orderly manner. Market liquidity condition has remained stable, and the Hong Kong dollar exchange rate stays steady. Under the Linked Exchange Rate System, Hong Kong dollar interbank rates generally track the US dollar counterparts, while shorter-tenor interbank rates tend to be also influenced by the supply and demand of Hong Kong dollar funding in the local market such as seasonal effects and capital market activities.

With regard to deposit and lending rates, banks will normally take into account factors such as funding supply and demand in the interbank market, the level of interbank rates and their own funding cost structures to access the merit and extent of adjustments, if any. The rate-cut cycle in the US is still at its initial stage. Interest rates might still remain at relatively high levels for some time. The public should carefully assess and continue to manage the interest rate risk when making property purchase, mortgage or other borrowing decisions.

The rate-cut decision in the US will not affect our financial and monetary stability. The HKMA will closely monitor market developments including trends of interest rates and movements of funds around the global markets to ensure financial and monetary stability.

Hong Kong Films Shine at Chicago's Asian Pop-up Cinema, Strengthening Cultural Ties

2025-04-06 16:00 Last Updated At：16:08

New York ETO showcases Hong Kong cinematic talents in Chicago

The Hong Kong Economic and Trade Office, New York (New York ETO) supported Season 19 of Chicago’s Asian Pop-up Cinema (APUC) by showcasing nine exceptional Hong Kong films and documentaries, including the United States premiere of "The Last Dance" on April 4 (Chicago time).

The Office also strengthened the cultural, business and educational ties between Hong Kong and Chicago, Illinois, during a duty visit to the city from April 3 to 5.

At the United States premiere of "The Last Dance" on April 4, Hong Kong actress Michelle Wai was honoured with the Extraordinary Actors Award for her outstanding performance. Director Anselm Chan joined her at the post-screening sharing session.

This year's APUC also welcomed four Hong Kong filmmakers, who presented their works and engaged with the audience. They included directors Ho Miu-ki ("Love Lies") and Albert Mak ("Hit N Fun"), as well as producers Chan Hing-ka ("Love Lies") and Paul Chan ("To Be Continued").

Addressing the award ceremony, the Director of the New York ETO, Ms Maisie Ho, praised the filmmakers, noting that they represent the diverse and exceptional talents within Hong Kong's creative industry.

"Through our Film Development Fund, the Hong Kong Special Administrative Region Government continues to support and nurture the growth of Hong Kong's creative industry, ensuring its presence on the global stage. By fostering talent, enhancing local production, and expanding audiences, we remain committed to bringing the best of Hong Kong cinema to the world," she said.

On April 3, the New York ETO cohosted a spring reception with the Hong Kong Business Association of the Midwest and the Hong Kong Trade Development Council . The annual event, attended by over 100 guests from Chicago's business, legal, academic, and cultural sectors, highlighted the strong ties between Hong Kong and Chicago.

Ms Ho noted in her welcome remarks that the Year of the Snake, a symbol of wisdom, adaptability, and transformation, perfectly reflects Hong Kong's ability to continuously reinvent itself while maintaining its leadership in finance and trade. The event also showcased the works of Chicago-based Hong Kong artist Cherry Tung and featured a Hong Kong-themed cocktail.

Ms Ho also had a meeting with Vice President for International Relations at Northwestern University Devora Grynspan to discuss areas of mutual interest and introduce Hong Kong's talent admission schemes available to university graduates. Northwestern University is among the list of eligible institutions under the Top Talent Pass Scheme.