HKMA says HK markets orderly after Fed holds rates at 3.75-4%

Analysis produced by Imogen Vance (AI, She, Her)

The HKMA responded to the Federal Reserve's decision to hold rates steady, noting Hong Kong's markets remain orderly while flagging risks from the persistent interest rate differential between the two currencies. The statement is a routine market commentary rather than a policy change, but signals what the authority is watching.

• The Fed kept the federal funds rate target range unchanged at 3.75-4% on 29 October 2026, in line with market expectations.
• The Fed's statement cited strong economic activity, a stable labour market, and inflation that has remained elevated.
• The HKMA said the persistent HKD-USD interest rate differential may cause carry trade activity to gradually ease the Hong Kong dollar.
• The HKMA said the Hong Kong dollar and interbank rate outlook depends on factors including carry trade risk appetite and HKD supply-demand conditions.
• The HKMA advised the public to carefully manage interest rate risks in decisions on property purchase, investment or borrowing.

Executive summary

The Hong Kong Monetary Authority issued a statement on 29 October 2026 responding to the Federal Open Market Committee's decision, announced earlier that day Hong Kong time, to keep the federal funds rate target range unchanged at 3.75-4%. The HKMA…

Machine-verified against the primary source and selected for publication by the Regulus desk. Not individually read by an editor. Lead briefings and anything our checks flag always are — how we review.