Meridian: Fed rate hike risk in December remains; limited adjustment to Hong Kong's prime rate

Zhito Finance APP has learned that the Federal Reserve's interest rate meeting has concluded, announcing that the benchmark interest rate will remain in the 3.75% to 4% range. In Hong Kong, HSBC announced today that the prime rate (P) will remain unchanged, staying at the current 5% level. Cao Deming, Chief Vice President of Centaline Mortgage Brokerage, stated that the defensive rate hike made by the Federal Reserve last month still needs to be observed for its effect on controlling inflation, hence the decision to hold steady this time. However, the U.S. September Consumer Price Index (CPI) rose 3.7% year-on-year, and core CPI rose 2.6% year-on-year, both higher than market expectations. Coupled with ongoing uncertainties in the geopolitical situation, if future inflation data remains elevated, it cannot be ruled out that the Federal Reserve may raise rates again in December to suppress inflation.