HKMA Keeps Base Rate at 4% Following Fed Pause

The Hong Kong Monetary Authority (HKMA) has maintained its base rate at 4% following a similar move by the US Federal Reserve. The decision was announced on July 30, 2026.

The HKMA's action came hours after the US Federal Reserve held its target rate steady in a range of 3.5% to 3.75%, concluding its fifth Federal Open Market Committee meeting of the year.

Federal Reserve Chairman Kevin Warsh addressed concerns about inflation expectations, stating that some households and businesses have developed a mistaken impression from five years of high inflation that the Fed's implicit inflation target was above 2%. Warsh reiterated that there is no soft inflation target and that the committee's only target is 2%.

Tommy Ong, managing director of T.O. & Associates Consultancy, noted that the absence of a rate hike at this time is slightly positive for Hong Kong's real estate and stock market, but added that the magnitude of any price increase would be limited due to uncertainty in US inflation readings.