On the morning of March 19, the Federal Open Market Committee of the U.S. Federal Reserve announced it would maintain the target range for the federal funds rate at 3.50–3.75%. The Hong Kong Monetary Authority stated that the Fed's decision to keep interest rates unchanged aligns with market expectations. The dot plot released after the meeting indicated that the Fed may lower interest rates by another 25 basis points within 2026. However, market consensus suggests there is significant uncertainty regarding the future direction of U.S. monetary policy. Recent tensions in the Middle East have introduced additional variables affecting oil prices and, consequently, the trajectory of U.S. inflation. In Hong Kong, the monetary and financial markets continue to operate in an orderly manner. Under the linked exchange rate system, Hong Kong dollar interbank rates generally move in line with U.S. dollar interest rates, while shorter-term interbank rates are also influenced by local Hong Kong dollar funding supply and demand factors, such as seasonal variations and capital market activities. Given the uncertainty surrounding future U.S. interest rate movements, which may also impact Hong Kong’s interest rate environment, the public is advised to carefully consider and manage interest rate risks when making decisions related to property purchases, investments, or borrowing. The Hong Kong Monetary Authority will continue to closely monitor market developments to maintain monetary and financial stability.