“The series of tariff measures recently announced by the US authorities have further increased uncertainty about US inflation and the economic growth outlook,” the city’s de facto central bank said in a statement. “The Fed therefore is adopting a patient approach to its monetary policy.”
It added that the way forward for US tariffs and interest rates was not clear.
“Global financial markets would inevitably be affected and exhibit volatility,” the HKMA said. “The public should carefully assess and manage risks when making property purchases, investments or borrowing decisions.”
Earlier on Thursday, the HKMA kept its base rate unchanged at 4.75 per cent. Overnight in Washington, the US Federal Reserve kept its target rate range at 4.25 to 4.5 per cent, as policymakers awaited clarity on the potential inflationary impact of President Donald Trump’s tariffs.