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 StatesFederal Reserve (the Fed) announced early today (May 8, Hong Kong time) after its two-day meeting that it had decided to keep the target range for the federal funds rate unchanged at 4.25-4.5 per cent.
The policy decision is in line with market expectations. The series of tariff measures recently announced by the US authorities have further increased uncertainty about US inflation and economic growth outlook. The Fed therefore is adopting a patient approach to its monetary policy.
In Hong Kong, the monetary and financial markets have continued to operate in an orderly manner. The recent strengthening of the Hong Kong dollar, mainly driven by equity-related demands and the appreciation of regional currencies against the US dollar, has triggered the strong-side Convertibility Undertaking (CU) of HK$7.75 to US$1 under the Linked Exchange Rate System (LERS). The Hong Kong Monetary Authority (HKMA) sold Hong Kong dollars to the market in exchange for US dollars in accordance with the LERS, and the Aggregate Balance increased accordingly, leading to more ample Hong Kong dollar liquidity and lower interbank interest rates. Going forward, Hong Kong dollar interbank rates will be affected by the supply and demand of Hong Kong dollar as well as the Hong Kong dollar liquidity condition and other factors, especially in the shorter tenors.
The markets are expected to focus on developments relating to US tariff measures and the US interest rate path, both of which are subject to considerable uncertainty. Global financial markets would inevitably be affected and exhibit volatility. The public should carefully assess and manage risks when making property purchase, investment or borrowing decisions. The HKMA will continue to closely monitor market developments and maintain monetary and financial stability.
Source: AI-generated images
HKSAR Government welcomes court's decision to dismiss Chow Hang Tung's application for judicial review on clothing policy for persons in custody
The Hong Kong Special Administrative Region Government welcomes the judgment handed down by the Court of First Instance of the High Court today (January 13) to dismiss Chow Hang Tung's application for judicial review on the clothing policy for persons in custody (PICs).
The court judgment pointed out that the current clothing policy for PICs, including the requirement for female PICs to wear trousers in summer daytime, was formulated by the Correctional Services Department (CSD) as authorised by the Prison Rules. The Court was satisfied that the CSD had the expertise and experience in the relevant context, and that it had carefully considered various factors, taken into account of professional opinion when making the decision, as well as reviewed the policy continuously. The Court ruled that Chow Hang Tung had failed to demonstrate that the current policy constituted less favourable treatment of a particular gender. The Court pointed out that there was currently no factual evidence to support any assertion that there was widespread concern about the health effects of wearing trousers in summer. In addition, the rule was not absolute, but instead allowed individual PICs to apply for exceptional arrangements in special circumstances. At the same time, the Court also rejected Chow Hang Tung's assertion that she had requested to the CSD in July and August 2024 to wear shorts and had been refused.
A spokesman for the Security Bureau said, "The ruling of the Court of First Instance confirmed that the CSD's approach is reasonable, justified and lawful. According to Rule 26 of the Prison Rules, the CSD must provide every PIC with a uniform that meets a scale imposed by the Commissioner of Correctional Services. Over the years, the CSD had appointed task groups from time to time to review the clothing arrangements of PICs. These reviews gave ample consideration to numerous factors, including the type of correctional institutions, PICs' varying daily routines and activities involved, the need for thermal, physical and psychological comfort for PICs of different genders, privacy and decency of PICs and the security, good order and discipline of the prison, so as to continuously refine clothing arrangements according to the prevailing circumstances."
The spokesman stated, "Chow Hang Tung's assertion that she requested to wear shorts in summer and was rejected by the CSD is entirely inconsistent with the facts and was rejected by the Court. Besides, the current clothing policy for PICs already provides a degree of flexibility. For example, a PIC may make an application to wear other clothing on medical or non-medical grounds to the CSD, and the CSD would make appropriate arrangements having considered the actual circumstances and relevant factors."
The CSD will continue to impartially implement the relevant rules of the Prison Rules in accordance with the law and commit to providing a secure, safe, humane, decent and healthy custodial environment.
Source: AI-found images
