HKMA leaves base rate unchanged at 5.75 percent
The Hong Kong Monetary Authority (HKMA) on Thursday retained its base rate at 5.75 percent, following the US Federal Reserve's decision to keep its rates unchanged. Speaking to reporters after addressing Hong Kong FinTech Week, HKMA chief executive Eddie Yue said the Hong Kong dollar exchange rate remains stable.  "The Fed will have to consider whether to further increase the interest rate. If the interest rate reaches its peak, the Fed will also need to consider how long should the high interest rate environment persist," Yue said. "In Hong Kong, if the US keep raising the interest rate, our base rate will increase accordingly... But most importantly, we see that the Hong Kong currency market continues to operate smoothly and orderly."  Leading local banks HSBC, Standard Chartered and Bank of China (Hong Kong) said they would keep their best lending rates unchanged. In a statement, the HKMA reminded people to assess and manage risks carefully when making property purchase, mortgage or other borrowing decisions. The number of mortgages in negative equity hit 11,123 at the end of September, up from 3,341 in June, according to figures released by the HKMA on Tuesday. Yue said the authority will continue to monitor the property market and will intervene if necessary to maintain banking stability.  The HKMA chief also announced that Hong Kong tourists will be able to use the Faster Payment System (FPS) in Thailand from December 4.  He said more than eight million businesses in Thailand will accept FPS transactions, and Thai visitors will also be able to use their local faster payment system - PromptPay - at businesses accepting FPS in Hong Kong. "[Hong Kong tourists] will no long need to change Thai baht or use other payment methods which are relatively expensive when travelling in Thailand," said Yue. He added that the HKMA is still discussing the details of the bilateral payment arrangement with the Bank of Thailand and the industry._____________________________
Last updated: 2023-11-02 HKT 19:09 