HKMA's response on US Federal Open Market Committee meeting

The following is issued on behalf of the Hong Kong Monetary Authority:

     The Hong Kong Monetary Authority (HKMA) noted that the US Federal Open Market Committee (FOMC) maintained interest rates unchanged at its meeting yesterday (July 29). The FOMC said that the economy expanded moderately and indicated that it would be appropriate to raise rates when it has seen some further improvement in the labour market and is reasonably confident that inflation will return to 2 per cent over the medium term.

     The Chief Executive of the HKMA, Mr Norman Chan, said, "We believe we are now getting closer to a rate lift off in the US. The normalisation of US interest rates is likely to have material impact on global fund flows and asset markets, and may lead to greater market volatility. Members of the public are reminded to manage the risks prudently."

Ends/Thursday, July 30, 2015
Issued at HKT 11:08