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

2026-06-18 12:30 Last Updated At：15:01

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 earlier today (June 18, Hong Kong time) its decision to keep the target range for the federal funds rate unchanged at 3.5-3.75 per cent.

The policy decision is in line with market expectations. The statement released after the meeting indicated that inflation has remained elevated, reflecting that the Committee is watchful over the outlook on inflation.

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.

US interest rate adjustments will depend on developments in inflation, labour market, and other economic data, and 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.

Hui Discusses Future Financial Synergy Between Shanghai and Hong Kong at Lujiazui Forum

SFST leads delegation to attend Lujiazui Forum in Shanghai

The Secretary for Financial Services and the Treasury, Mr Christopher Hui, and the financial delegation continued their visit to Shanghai today (June 18). When speaking at the 2026 Lujiazui Forum last evening, Mr Hui had discussions with industry leaders, academics and experts on the future trajectory of financial partnership between Shanghai and Hong Kong.

Upon arrival in Shanghai yesterday afternoon (June 17), Mr Hui and the delegation visited the Shanghai Pudong Service Center for Overseas Investment. This Center, spearheaded by the Shanghai Municipal Commission of Commerce, is a one-stop service platform to support enterprises going global with professional services in the legal, financial, consulting, and accounting fields. Four Shanghai enterprises looking for expansion to global markets were invited to join an in-depth dialogue session with the delegation who come from the financial, insurance, accounting and investment sectors. The delegation introduced to the enterprises Hong Kong's strengths in the financial market and legal and other professional services, as well as the support available to them while going global via Hong Kong.

In the evening, Mr Hui led the delegation to attend the 2026 Lujiazui Forum, where he joined a panel discussion session at the fourth plenary session themed "Empowering High-standard Financial Opening-up Through Shanghai-Hong Kong Financial Synergy".

When addressing the collaboration between the two places, Mr Hui highlighted three dimensions: comprehensiveness, long-term nature and synergy. He stated that Hong Kong is a mature, safe and stable international corporate treasury centre for the nation, supported by a common law legal system, regulatory frameworks aligned with international standards, a simple and transparent tax regime, as well as an extensive Comprehensive Avoidance of Double Taxation Agreement network. Furthermore, Hong Kong has a highly professional and open market that ensures the free flow of capital, thus attracting top global banking, accounting, legal, compliance, and risk management service institutions, making it the most mature multinational corporate treasury management platform in the Asia-Pacific region.

"Hong Kong is now the world's leading cross-boundary wealth management centre and the largest offshore Renminbi business hub in the world. Just last week, Hong Kong unveiled the Action Plan to Promote the Development of Corporate Treasury Centres in Hong Kong, setting out a series of bold measures to create a favourable environment for multinational corporations by offering more tax benefits, greater tax certainty, and enhanced compliance flexibility so as to facilitate corporations in centralising their fund management, asset allocation and risk management in Hong Kong. Earlier this year, we signed a co-operation agreement with the Shanghai Gold Exchange for the establishment of the Hong Kong gold central clearing system, with a view to jointly building a truly integrated, highly efficient and open gold ecosystem. The move will provide corporations with broader options for investment and risk diversification. With these numerous advantages, Hong Kong truly serves as a safe 'buffer zone' and hub for enterprises planning global expansion. All these perfectly exemplify Hong Kong's advantages in the two dimensions regarding comprehensiveness and long-term nature."

He also elaborated on "synergy". He said, "In the face of more complex international compliance requirements and a changing geopolitical landscape, it is of more importance for Mainland enterprises to leverage a robust, secure and professional global treasury management system while going global. As two major hubs in the national financial landscape, Shanghai and Hong Kong are respectively anchored in the massive market of the Chinese Mainland and backed by a global capital market network, forming an indispensable 'dual-hub' paradigm for the nation's financial opening up and real economy development that offers highly complementary strengths. This advantage can provide Mainland enterprises going global with a full-chain service of 'domestic co-ordination, global allocation, and manageable risk'."

Before concluding the four-day visit to Shanghai, Hangzhou, and Suzhou, Mr Hui, together with the delegation, visited the China Taiping Insurance Group this morning and met with its Vice Chairman and General Manager, Mr Li Kedong, and other senior management. The two parties exchanged views on the latest developments in the insurance industry on the Mainland and Hong Kong, as well as the fruitful outcomes brought about by connectivity between the two places.

Mr Hui departed for Hong Kong this afternoon.