HKMA follows the Federal Reserve to keep interest rate unchanged

South China Morning PostCenter-RightEN 1 min read 100% complete by Enoch YiuJanuary 29, 2026 at 12:07 AM

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The Hong Kong Monetary Authority (HKMA) maintained its base rate at 4 percent, mirroring the US Federal Reserve's decision to hold its target rate between 3.5 and 3.75 percent. The HKMA's move, announced on Thursday, follows the Fed's first Federal Open Market Committee (FOMC) meeting of the year. Both central banks had previously cut interest rates by a total of 75 basis points since September. Fed Chairman Jerome Powell indicated that current data does not suggest a need for immediate rate cuts. The Fed's decision to hold rates steady was widely anticipated by traders, with the majority expecting no change. The unchanged rates mean borrowers in Hong Kong will likely wait longer for lower funding costs.

Key Entities & Roles

Key Player Opposition Context

Xinhua 30% Washington 30% Federal Open Market Committee (FOMC) ×370% United States 70% Jerome Powell ×275% Hong Kong 80% Hong Kong Monetary Authority (HKMA) ×290% Federal Reserve ×595%

Keywords

interest rate 100% hkma 90% federal reserve 90% base rate 70% monetary policy 70% fomc 60% funding costs 60% basis points 50% jerome powell 50% unchanged 40%