---
title: "HKMA: HKD-USD Interest Rate Differential Remains Notable; HKD Exchange Rate and HIBOR Trends Subject to Many Variables"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/303486910.md"
description: "The HKMA noted that the Fed kept rates unchanged at 3.75-4%, aligning with expectations amid strong economic activity and persistent inflation. The notable HKD-USD interest rate differential may drive carry trades, potentially easing the Hong Kong dollar. HIBOR trends remain subject to various factors including risk appetite and capital flows. The HKMA advises managing interest rate risks in property and investment decisions while continuing to monitor market stability."
datetime: "2026-10-29T02:53:41.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/303486910.md)
  - [en](https://longbridge.com/en/news/303486910.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/303486910.md)
generator: "portal-rs"
---

# HKMA: HKD-USD Interest Rate Differential Remains Notable; HKD Exchange Rate and HIBOR Trends Subject to Many Variables

The Hong Kong Monetary Authority (HKMA) said the Federal Reserve announced 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.

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---
> **Disclaimer: This article is for reference only and does not constitute any investment advice.**