[Hong Kong Monetary Authority Chief Executive: Will Closely Monitor Market Changes to Maintain Monetary and Financial Stability] Golden Finance reports that in the early hours of September 17 Beijing time, the Federal Reserve announced an increase in the federal funds rate target range by 25 basis points, raising the benchmark funds rate from 3.50%-3.75% to 3.75%-4%. At the same time, the Hong Kong Monetary Authority raised its base rate by 25 basis points to 4.25%. Hong Kong Monetary Authority Chief Executive Eddie Yue stated that in Hong Kong, the monetary and financial markets continue to operate in an orderly manner. However, the widening interest rate differential between Hong Kong and the U.S. may lead to carry trades, which could gradually weaken the Hong Kong dollar. The direction of the Hong Kong dollar exchange rate and interbank rates involves considerable uncertainty, particularly influenced by factors such as the Hong Kong-U.S. interest rate differential and the supply and demand of Hong Kong dollar funds. Regarding deposit and lending rates, Eddie Yue noted that banks generally consider factors such as the supply and demand of funds in the interbank market, interbank rates, current relevant interest rate levels, and their own funding cost structures when assessing whether to adjust rates and the extent of such adjustments. Eddie Yue emphasized that changes in the Federal Reserve's interest rates carry significant uncertainty, depending on inflation trends, labor market conditions, and other economic data, which will also impact Hong Kong's interest rate environment. Hong Kong residents should fully 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 changes and maintain monetary and financial stability.