The Hong Kong Monetary Authority (HKMA) kept its base rate unchanged at 4.25% on October 29, 2026, following the U.S. Federal Reserve’s decision to maintain its benchmark rate, in line with market expectations. The move reflects Hong Kong’s Linked Exchange Rate System, under which the Hong Kong dollar trades within a HKD 7.75–7.85 per U.S. dollar band, requiring local interest rates to broadly track U.S. monetary policy. Hong Kong’s economy grew 4.3% year-on-year in Q2 2026, slowing from 5.9% in the previous quarter amid softer domestic demand and fixed investment, while exports remained robust. It remains unclear whether major local banks will follow suit, with lenders expected to announce their rate decisions on Thursday afternoon. While the HKMA’s decision serves as a reference, banks independently set their prime and savings rates.