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
Statement by ExCo Non-official Members
The following is issued on behalf of the Executive Council Secretariat:
Non-official Members of the Executive Council (ExCo Non-official Members) today (October 29) issued the following statement on the Government's follow-up work in relation to the fire at Wang Fuk Court:
The Hong Kong Special Administrative Region (HKSAR) Government today released the report of the Independent Committee in relation to the fire at Wang Fuk Court in Tai Po. The Chief Executive and Principal Officials also held a press conference to give an account of relevant matters to the public. ExCo Non-official Members expressed full support for the Government in facing up to the problems, shouldering responsibility, and pursuing comprehensive reforms.
The Convenor of ExCo Non-official Members, Mrs Regina Ip, said, "The Chief Executive and Principal Officials have clearly explained to the public the Government's follow-up work, and, on behalf of the HKSAR Government, apologised to the residents of Wang Fuk Court and the community, demonstrating sincerity and political commitment. The Chief Executive also called on his team to continue to give their utmost in their respective positions in pressing ahead with various reforms and the extensive work ahead, while drawing lessons from the incident and better exercising leadership to step up the implementation of the result-oriented governing approach. I support this position."
"The Government's plans to implement comprehensive reform on the basis of the Independent Committee's report are comprehensive and pragmatic, addressing the crux of the issues. I concur with the seven major directions of systemic reform put forward by the Government. These include combatting bid-rigging in building maintenance and renovation projects, establishing a cross-departmental task force to combat crimes related to bid-rigging in such projects, establishing a Building Maintenance Support and Services Council, reforming the operation and regulatory system for building maintenance and renovation, reforming the structure of the Buildings Department, establishing a centralised data system and reforming the complaint mechanism, and establishing a steering committee chaired by the Chief Secretary for Administration to follow up on the Independent Committee's recommendations."
As regards accountability, the Government has demonstrated its determination to pursue responsibility comprehensively and enforce accountability at various levels. On criminal liability, law enforcement authorities have successively instituted prosecutions against the companies and individuals involved in the incident. The Government has also initiated the Administrative Responsibility Two-tier Investigation Mechanism under the Heads of Department Accountability System, and is strictly following up on the administrative responsibility of the civil servants concerned. As for political accountability, the Chief Executive, having considered a wide range of factors, decided that the Secretary for Housing should take political accountability, and has accepted the Secretary's resignation.
The fire at Wang Fuk Court has exposed a number of long-standing inadequacies at different systemic levels, and the issues involved are complex and intertwined. Properly addressing these issues requires firm resolve as well as precise and decisive decision-making. ExCo Non-official Members will give their full support to the Government in taking forward comprehensive reforms and will continue to fully support its governance. ExCo Non-official Members firmly believe that, as long as society works together with dedication to turn grief into the strength to move forward, learns from the experience, and thoroughly implements systemic reforms, similar incidents can certainly be prevented, making Hong Kong a safer and better home.
