HKMA warns of prolonged high interbank rates

The central bank issued the warning post unchanged US fed funds rate at 5.25-5.5%.

The central bank has warned that Hong Kong dollar interbank rates might remain high for some time.

The Hong Kong Monetary Authority (HKMA) said this in response to the US Fed's decision to keep the target range for the federal funds rate unchanged at 5.25-5.5%.

“The public should carefully assess and manage the relevant risks when making a property purchase, mortgage or other borrowing decisions,” the HKMA said.

The HKMA, however, said that the Hong Kong dollar exchange rate remains stable, with the city's financial and monetary markets operating smoothly.