HKMA Responds to US Fed Rate Decision: Rates Steady Amid Strong Economy and Elevated Inflation Concerns

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

The following is issued on behalf of the Hong Kong Monetary Authority:

The Hong Kong Monetary Authority. Photo source: reference image

The Federal Open Market Committee of the United States Federal Reserve (the Fed) announced earlier today (October 29, Hong Kong time) its decision to keep the target range for the federal funds rate unchanged at 3.75-4 per cent.

The policy decision is in line with market expectations. The statement released after the meeting indicated that economic activity was expanding at a strong pace and the labour market was stable, but inflation has remained elevated. This reflects that the Committee is watchful over the outlook on inflation, though it may need more time to observe how the data evolves.

Hong Kong's monetary and financial markets have continued to operate in an orderly manner. As the noticeable HKD-USD interest rate differential persists, carry trade activities may cause the Hong Kong dollar to gradually ease. That said, the outlook for the Hong Kong dollar and interbank rates can vary due to various factors, such as the market's risk appetite for carry trades, and the supply-demand conditions for Hong Kong dollars which are in turn influenced by capital market activities and other seasonal factors.

US interest rate adjustments are subject to considerable uncertainty, and 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.

The Fed. Photo source: reference image

FEHD orders fresh provision shop in Mong Kok to suspend business for 14 days

The Director of Food and Environmental Hygiene has ordered a fresh provision shop in Mong Kok to suspend business for 14 days, as the licensee repeatedly breached the Food Business Regulation (FBR) by extending the business area illegally.

The shop, located at Block F on the ground floor of Cheung Fai Building at 22 Tong Mi Road, has been ordered to suspend business from today (October 29) to November 11.

"Two convictions for the above-mentioned breach were recorded against the shop licensee in January and September this year. A total fine of $5,200 was levied by the court, and 30 demerit points were registered against the licensee under the department's demerit points system. The contraventions resulted in the 14-day licence suspension," a spokesman for the Food and Environmental Hygiene Department (FEHD) said.

The licensee concerned had a record of two convictions for the same offence in July and September last year. A total fine of $4,800 was levied, and 30 demerit points were also registered, leading to a seven-day licence suspension in December last year.

The spokesman reminded licensees of food premises to comply with the FBR, or their licences could be suspended or cancelled.

Licensed food premises are required to exhibit their licence and a sign at a conspicuous place of the premises, indicating that the premises are licensed. A list of licensed food premises is available on the FEHD website (www.fehd.gov.hk/english/licensing/licence-foodPremises-search.html).

Source: AI-found images