Hong Kong Foreign Currency Reserves Slide in End-October
HKMA: Interest rates may remain at relatively high levels for a period of time.
The Federal Reserve in the USA cut interest rates by 0.25 basis points. The Hong Kong Monetary Authority stated that as expected by the market, the Fed further lowered interest rates, implementing a looser monetary policy. However, the future pace of rate cuts depends on the economic data in the USA, which will be affected by fiscal and economic trade policies, thus there are still many variables. Additionally, since the monetary policy environments of major economies are not necessarily fully synchronized, the risk of global market volatility is worth noting. The Hong Kong Monetary Authority mentioned that the financial and monetary markets in Hong Kong are operating smoothly, with stable market liquidity and a stable exchange rate of the Hong Kong dollar. The Hong Kong dollar's interbank interest rates are generally approaching the US dollar rates under the linked exchange rate system, while shorter-term interbank rates.
The Hong Kong Monetary Authority has lowered the basic interest rate by 25 basis points to 0.5%.
After the usa Federal Reserve cut interest rates by 0.25 percentage points again, the Hong Kong Monetary Authority lowered the discount window base rate by 25 basis points to 5 percent. (wl/w)~
Hong Kong Monetary Authority cuts benchmark interest rate to 5.00%.
November 8th, Kwong Wah ｜ The Hong Kong Monetary Authority lowered the benchmark interest rate to 5.00%, down from 5.25% previously. Overnight, the Fed announced a 25 basis point rate cut.
HKMA: Official forex reserves slightly decreased to $421.4 billion by the end of October.
The Hong Kong Monetary Authority announced that the official forex reserves at the end of October this year were $421.4 billion, a slight decrease of 0.3% from the $422.8 billion at the end of the previous month. There were no outstanding forex contracts at the end of October or September. The total forex reserves of $421.4 billion is equivalent to more than five times the circulating currency of Hong Kong, or about 39% of the mmf supply M3 in Hong Kong.
In October, the PMI of Hong Kong's "Economy" rose to 52.2, indicating a regained growth in the business environment.
S&P Global announced that the Hong Kong Purchasing Managers' Index (PMI) for October, adjusted for seasonality, recorded 52.2, higher than September's 50, marking the first improvement since May and reflecting a positive turnaround in the business environment at the beginning of the fourth quarter this year, breaking free from the stagnation in September. During the period, the increasing demand is a key pillar supporting the improvement of the business environment. The overall growth in new orders reached the highest level in a year and a half, with interviewees often citing the mainland's introduction of stimulus policies and a resurgence in tourism as reasons. Business from the mainland and overseas also rebounded after shrinking at the end of the third quarter, with industry data showing a significant increase in orders in the service sector in October. Due to the new initiatives.