Hong Kong Monetary Authority: The US rate cut this time is in line with expectations, but the future rate cut magnitude and pace are uncertain.

On December 10th local time, the Federal Reserve Board of the United States concluded a two-day monetary policy meeting and announced a 25 basis point reduction in the federal funds rate target range to between 3.50% and 3.75%. Eddie Yue, Chief Executive of the Hong Kong Monetary Authority, pointed out that the Fed's rate cut this time is in line with market expectations, but there are still many uncertainties regarding inflation trends and employment in the United States. He estimated that the future local monetary policy and interest rate trends need to be observed. He also reminded that the extent and pace of future rate cuts in the United States are uncertain, which will have an impact on the interest rate environment in Hong Kong. Citizens should manage interest rate risks when investing in property and borrowing. Eddie Yue stated that the decline in interest rates is helpful for the property market and the economy, and also has a positive effect on reducing borrowing costs. Hong Kong's economic growth in the past few quarters, such as 3.8% growth in the third quarter, was strong in both exports and consumption, with a good performance in the capital market and a stable property market. With the rate cut, it will have a certain level of help for the economy. Regarding the fire at the Hong Fu Court in Tai Po, Eddie Yue stated that the Hong Kong Monetary Authority and the banking industry have quickly introduced two rounds of a total of 11 measures to assist the victims. They will continue to discuss with the industry and the government, as well as pay attention to whether new measures will be introduced. As for the mortgage issues at Hong Fu Court, Eddie Yue said the situation is complex. They are closely discussing with various sectors, including the government, insurance, banks, and legal professionals, to determine how to handle legal issues based on insurance and resettlement arrangements for residents before devising a solution. Currently, a temporary arrangement has been provided to defer mortgage payments for the victims for 6 months.