HKMA’s Response to US Fed’s Interest Rate Decision

The Federal Open Market Committee of the Federal Reserve (the Fed) announced earlier today (Hong Kong time) its decision to keep the target range for the federal funds rate unchanged at 3.5-3.75%. 

The policy decision is in line with market expectations.  The market generally considers that the path of US monetary policy remains quite uncertain, depending on developments in inflation trend and labour market conditions. 

Hong Kong’s monetary and financial markets have continued to operate in an orderly manner.  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 factors and capital market activities. 

The future trend of US interest rates remains quite uncertain, which may influence the interest rate environment in Hong Kong.  The public should carefully manage interest rate risks when making decisions about property purchase, investment or borrowing.  The HKMA will continue to closely monitor market developments and maintain monetary and financial stability.

Hong Kong Monetary Authority
29 January 2026