Financial News
Written by: Hu Xueneng
2020-04-30 11:56
Date of last update: 2020-04-30 11:56The Fed announced on Wednesday (29th) that it would maintain interest rates between 0% and 0.25%. Hong Kong Monetary Authority President Yu Weiwen said that because the impact of the new coronavirus epidemic on the US economy is difficult to dissipate in the short term, the Fed continues to maintain the current policy interest rate level, which is in line with market expectations.
Yu Weiwen also pointed out that he noted that the Fed would continue to implement measures to support market liquidity and facilitate borrowing. He believed that this would have a positive effect on maintaining the normal operation of the market and promoting the recovery of the US economy.
HKMA sells Hong Kong dollars to help smooth bank lending
He said that Hong Kong ’s currency market remained stable. Recently, the Hong Kong exchange rate has repeatedly triggered strong exchange guarantees, which has increased the sum of the balance of the banking system. This will not only help to maintain smooth inter-bank lending activities, but also allow more room for downward adjustment of the Hong Kong dollar interest rate. The interaction between the Hong Kong dollar exchange rate and the interest rate also reflects the effective operation of the linked exchange rate system.
He also mentioned that the HKMA has introduced a number of measures to ensure that the banking system has sufficient liquidity to deal with the impact of the epidemic, including the reduction of Exchange Fund Bills, the introduction of US dollar liquidity arrangements, further explanation of the details of the standing liquidity arrangements and the liquidity ratio. Regulatory requirements. The HKMA will continue to closely monitor market conditions and maintain the stability of the Hong Kong dollar exchange rate in accordance with the linked exchange rate mechanism.
Fed maintains near zero interest rate until economic recovery
[New Coronary Pneumonia] What major moves remain after the Fed has repeatedly made moves?
Federal Reserve Board discusses interest rate