Hong Kong Monetary Authority: The current US interest rate cut is in line with expectations, but the extent and pace of future interest rate cuts is uncertain

The Zhitong Finance App learned that on December 10, local time, the US Federal Reserve ended a two-day monetary policy meeting and announced that it would lower the federal funds rate target range by 25 basis points to between 3.50% and 3.75%. Yu Weiwen, Chief Executive of the Hong Kong Monetary Authority, pointed out that although the current interest rate cut by the Federal Reserve is in line with market expectations, there are still many uncertainties about the inflation trend and employment situation in the US. It is estimated that the future trend of local monetary policy and interest rates remains to be seen. He also warned that the extent and pace of US interest rate cuts in the future is uncertain, which will have an impact on the interest rate environment in Hong Kong. Citizens should manage interest rate risks when investing in buying homes and borrowing.

Yu Weiwen pointed out that falling interest rates are beneficial to the property market and economy, and at the same time have a positive effect on reducing borrowing costs. Hong Kong's economic growth in the past few quarters, such as 3.8% growth in the third quarter. Both exports and consumption were strong, the capital market performed well, and the property market was stable. It will have a positive effect on consumption. Coupled with interest rate cuts, it has helped the economy to a certain extent.

Regarding the fire at Wang Fu Yuen in Tai Po, Yu Weiwen pointed out that the Hong Kong Monetary Authority and the banking industry have quickly introduced two rounds of 11 measures to assist the victims. At the same time, they will continue discussions with the industry and the government and keep an eye on whether new measures will be introduced.

Regarding the Hongfuyuan mortgage issue, Yu Weiwen said that the situation is complicated. There are close discussions with people from various sectors, including the government, insurance, banking and the legal community. It is necessary to deal with legal issues before a plan can be introduced based on insurance and subsequent residents' resettlement arrangements. Currently, an arrangement to suspend loan payments for 6 months has been provided to disaster victims.