The Hong Kong Monetary Authority said on 29 October 2026 that the Federal Open Market Committee had earlier that day kept the federal funds target range unchanged at 3.75–4.00 per cent. The decision was in line with market expectations.
The Fed’s post-meeting statement indicated that economic activity was expanding at a strong pace and the labour market was stable, but that inflation had remained elevated. The HKMA characterised this as reflecting a watchful stance on the inflation outlook, with the Committee likely needing more time to assess incoming data.
The Authority noted that the noticeable HKD-USD interest-rate differential persists. As a result, carry-trade activity may cause the Hong Kong dollar to ease gradually. It added that the outlook for the Hong Kong dollar and for interbank rates can vary with changes in risk appetite for carry trades and with the supply and demand balance for Hong Kong dollars, which is itself influenced by capital-market activity and seasonal factors.
US interest rate adjustments are subject to considerable uncertainty and will depend on developments in inflation, the labour market and other economic data, and may influence the interest rate environment in Hong Kong.
US interest-rate adjustments remain subject to considerable uncertainty and will depend on developments in inflation, the labour market and other economic data. Those adjustments may influence the interest-rate environment in Hong Kong. The HKMA stated that the public should carefully manage interest-rate risks when making decisions on property purchases, investment or borrowing, and confirmed that it will continue to monitor market developments and maintain monetary and financial stability.
The statement changes no formal eligibility criteria, fee schedules or regulatory deadlines. It does, however, restate that the path of US rates remains data-dependent and that the resulting differential continues to shape conditions in the Hong Kong dollar market.