Asian Currencies Hold Steady as Middle East Tensions Offset Weaker US Dollar 
China Keeps Loan Prime Rates Unchanged for 13th Straight Month as Policymakers Prioritize Credit Demand Recovery 
Asian Stocks Slide as Chip Selloff Deepens Ahead of TSMC Earnings 
US Stock Futures Hold Steady as Soft Inflation Data Eases Fed Rate Hike Fears 
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RBA Minutes Signal Australia Central Bank Remains Ready to Raise Interest Rates if Inflation Persists 
IEA Warns China Rare Earth Export Curbs Could Threaten $6.5 Trillion in Global Production 
Japan Signals Preference for Low Interest Rates as BOJ Policy Debate Intensifies 
Malaysia Central Bank Moves to Support Ringgit Amid Foreign Fund Outflows 
Asian Stocks Slide as Nikkei Leads Losses on Tech Selloff and Rising U.S.-Iran Tensions 
Japan Core Inflation Seen Rising in June, Strengthening BOJ Rate Hike Outlook 
Gold Prices Slip as Oil Rally Fuels Inflation Fears, Strengthens Dollar 
US Stock Futures Fall as Netflix Outlook, Chip Selloff and Iran Tensions Weigh on Markets 
Fed Chair Kevin Warsh Signals Policy Overhaul as Hawkish Rate Outlook Rattles Markets 
Japan Producer Inflation Hits 7.1% in June, Fueling BOJ Rate Hike Expectations 
The Hong Kong Monetary Authority (HKMA) maintained its base rate at 4.75% on Thursday, aligning with the U.S. Federal Reserve’s decision to hold rates steady. Hong Kong’s monetary policy follows U.S. interest rate moves due to its currency peg to the U.S. dollar within a 7.75-7.85 range.
The HKMA stated that while this decision met market expectations, future rate cuts remain uncertain. "Interest rates in Hong Kong may stay high for some time, with the pace of U.S. cuts still unclear," it noted.
On Wednesday, the Fed kept rates unchanged, with Chair Jerome Powell signaling that cuts would only occur when inflation and labor data supported such a move. This places U.S. monetary policy in a wait-and-see phase as markets assess economic stability and President Donald Trump’s policy impact.
Despite high interest rates, the HKMA assured that Hong Kong's financial markets remain stable, with the local currency steady. It urged the public to consider interest rate risks when making property, mortgage, or borrowing decisions.
In 2024, the HKMA implemented three rate cuts, with the latest being a quarter-point reduction in December. However, ongoing uncertainty about the Fed’s timeline for cuts means Hong Kong borrowers may continue to face elevated rates in the near term.
As global economic conditions evolve, both investors and homeowners should stay informed about potential shifts in monetary policy.
