HKMA’s response on Federal Open Markets Committee Meeting

The Hong Kong Monetary Authority (HKMA) noted that the FOMC maintained interest rates unchanged at its meeting yesterday. FOMC said that the economy expanded moderately and indicated that it would be appropriate to raise rates when it has seen some further improvement in the labour market and  is reasonably confident that inflation will return to 2% over the medium term.

Mr Norman Chan, Chief Executive of the HKMA, said, “We believe we are now getting closer to a rate lift off in the US. The normalization of US interest rates is likely to have material impact on global fund flows and asset markets, and may lead to greater market volatility. Members of the public are reminded to manage the risks prudently.”

Hong Kong Monetary Authority
30 July 2015