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 States Federal Reserve (the Fed) announced early today (June 19, 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 "dot plot" released following the meeting indicated that the Fed might cut rates by a total of 50 basis points before year end. However, the market generally considers that the pace of future rate cuts remains quite uncertain as it is dependent on US inflation and labour market data developments, as well as the impact of tariff and other economic policies on economic activities.
In Hong Kong, the monetary and financial markets have continued to operate in an orderly manner. The Hong Kong dollar strengthened in early May and triggered the strong-side Convertibility Undertaking 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. As a result, the Aggregate Balance increased, and thus bringing down interbank interest rates. The interest rate differential between the Hong Kong dollar and the US dollar widened, incentivising carry trades, leading to the easing of the Hong Kong dollar towards the weak-side Convertibility Undertaking level of 7.85 over the past few weeks. Going forward, the outlook for the Hong Kong dollar market and for interbank rates remains uncertain due to various factors, including carry trades, the supply-demand conditions for Hong Kong dollars created by capital market activities, as well as other seasonal factors. If carry trades are to persist, the Hong Kong dollar exchange rate may weaken further, and may even trigger the weak-side Convertibility Undertaking. In such a case, the HKMA would then sell US dollars in exchange for Hong Kong dollars in accordance with the LERS, leading to a corresponding decline in the Aggregate Balance, hence driving Hong Kong dollar interbank rates to gradually increase.
The extent and pace of future US interest rate cuts are subject to considerable uncertainty, and the prevailing interest rate environment in Hong Kong may evolve due to the various factors mentioned above. The public should take into account the possibility of a rebound in Hong Kong dollar interest rates, and to properly manage the associated 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.
CHP reminds public to take precautions against cold weather
The Centre for Health Protection (CHP) of the Department of Health (DH) today (January 2) reminded the public, particularly the elderly, people with chronic illnesses, outdoor workers, pregnant women, infants and children, to adopt appropriate measures to protect their health in view of the cold weather.
Elderly and people with chronic illnesses
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A spokesman for the CHP said that in general, elderly people have less insulating fat, and their body temperature control mechanisms would be weaker. Their body may not respond appropriately to the cold weather. In addition, some senior persons may have decreased mobility, which can impair their ability to generate and conserve body heat.
Chronic illnesses, such as hypertension, diabetes or hypothyroidism, would lower their metabolic rate, subsequently causing their body to generate less heat. Besides, persons with chronic illnesses, such as chronic respiratory illnesses or cardiovascular and cerebrovascular diseases, are vulnerable to disease aggravation due to cold weather.
The spokesman reminded the public, in particular the elderly and persons with chronic illnesses, to adopt the following preventive measures:
Take note of the weather forecast. Wear warm clothing, including hats, scarves, gloves and socks, accordingly;
Consume sufficient food to ensure adequate calorie intake;
Perform regular exercise to facilitate blood circulation and heat production;
Stay in a warm environment. Avoid going out in the morning and at night when the temperature is lower, and avoid prolonged outdoor exposure;
Use heaters with care and maintain adequate indoor ventilation;
Avoid alcoholic beverages. Drinking alcohol cannot keep you warm. Alcohol accelerates the loss of body heat through dilated blood vessels, resulting in chilling instead; and
Seek medical advice if feeling unwell.
Infants, children and pregnant women
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Infants and young children are more susceptible to heat loss during the cold weather. The spokesman reminded parents that they should ensure babies are sufficiently warm, but it is also important to keep babies relatively lightly clothed to avoid overheating them. When children engage in outdoor activities, their clothing should be adjusted accordingly, and changed quickly if soaked. Infants, young children and pregnant women should also try to avoid going out in the morning and at night when the temperature is lower.
Parents should observe the following safety measures when putting their children to bed:
Keep the room well ventilated and at a comfortable temperature;
Always place babies on their backs to sleep. Leave their heads, faces and arms uncovered during sleep;
Babies do not need pillows. Place babies on a firm and well-fitted mattress to sleep. Avoid soft objects, pillows and loose bedding;
Let babies sleep in a cot placed near their parents' bed; and
Maintain a smoke-free environment.
Outdoor workers
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Outdoor workers should take heed of the weather report and wear appropriate warm clothing for work. Clothing should be changed as soon as possible if soaked. When the Cold Weather Warning is in force, they should take appropriate precautions. They should take a break immediately and seek help and medical attention if feeling unwell.
General public
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In addition, many respiratory pathogens, including influenza and SARS-CoV-2, may have increasing activity and community transmission during winter. Seasonal influenza vaccination is recommended for all persons aged 6 months or above, except those with known contraindications. Persons at higher risk of getting influenza and its complications, including the elderly and children, should receive seasonal influenza vaccinations early. Please see details of the vaccination schemes on theCHP'swebsite.
A person who gets influenza and COVID-19 at the same time may become more seriously ill and would have a higher risk of death. It is important for elderly persons, especially those residing in residential care homes, to receive both a seasonal influenza vaccination and a COVID-19 vaccination. They should also receive an additional booster against COVID-19 according to recommendations as soon as possible. The public should also maintain good personal and environmental hygiene against respiratory illnesses and note the following:
Surgical masks can prevent transmission of respiratory viruses from ill persons. It is essential for persons who are symptomatic (even if having mild symptoms) to wear a surgical mask;
Wear a surgical mask when taking public transport or staying in crowded places. It is important to wear a mask properly, including performing hand hygiene before wearing and after removing a mask;
Avoid touching one's eyes, mouth and nose;
Wash hands with liquid soap and water properly whenever possibly contaminated;
When hands are not visibly soiled, clean them with 70 to 80 per cent alcohol-based handrub;
Cover the mouth and nose with tissue paper when sneezing or coughing. Dispose of soiled tissue paper properly into a lidded rubbish bin and wash hands thoroughly afterwards;
Maintain good indoor ventilation;
When having respiratory symptoms, wear a surgical mask, refrain from work or attending classes at school, avoid going to crowded places and seek medical advice promptly; and
Maintain a balanced diet, exercise regularly, take adequate rest, do not smoke and avoid overstress.
Food-borne diseases, particularly those linked to hotpot cuisine, are also common in cold weather. The following preventive measures should be taken:
Wash hands before handling and consuming food;
Do not patronise unlicensed vendors or those with poor hygienic standards while selecting food;
Wash and cook all food thoroughly;
Vegetables should be washed thoroughly in clean running water before cooking and consumption. When appropriate, scrub vegetables with hard surfaces with a clean brush to remove dirt and substances, including pesticide residues and contaminants, from surfaces and crevices;
Shrimps should be fully cooked until the shells turn red and the flesh turns white and opaque;
For shellfish such as scallops and geoduck, scrub the shells thoroughly and remove internal organs;
Do not eat any undercooked freshwater aquatic products. To ensure that the food is thoroughly cooked, the centre of the food should reach a temperature of at least 75 degrees Celsius so as to destroy pathogens;
Most hotpot ingredients should be stored in a refrigerator at 4 degrees C or below, while frozen food should be stored in a freezer at -18 degrees C or below;
Never use raw eggs as a dipping sauce for hotpot; and
Use different sets of chopsticks to handle raw and cooked food to avoid cross-contamination.
In addition, when using fuel-burning appliances, especially in indoor areas, the public should ensure adequate ventilation to avoid harmful exposure to carbon monoxide (CO) and prevent CO poisoning.
Fo more health information, the public may call the DH's Health Education Infoline (2833 0111) or visit theCHP's websiteandFacebook Fanpageas well as press releases of the Labour Department on precautions against cold weather for outdoor workers and their employers when the Cold Weather Warning is in force.
The public may also call Dial-a-Weather (1878 200) or visit thewebsite of the Hong Kong Observatoryfor the latest weather information and forecasts, or itspage on Weather Information for Senior Citizens.
Source: AI-found images
