A flurry of optimism prevailed on global markets ahead of the US Federal Reserve's announcement of its interest rate hike decisions for November, with markets anticipating that the pace of the hikes will ease next year given dismal economic data in the US.

The Federal Open Market Committee (FOMC) of the Federal Reserve (the Fed) announced a rate hike of 75 basis points at the early hours today (Hong Kong time) after its two-day meeting, raising the target range for the federal funds rate to 3.75-4%. The HKMA has adjusted the Base Rate upward by 75 basis points to 4.25% according to the established mechanism with immediate effect.

The US Federal Open Market Committee (FOMC) meeting outcome reflected that the Federal Reserve (Fed) needs to keep inflation within the target within the next two years, which triggered its counterparts to accelerate policy rate hikes.

In recent months, market participants have been closely following global financial developments, particularly the pace of interest rate hikes in the US. For many Hong Kong residents, local interest rate movements directly impact their ability to purchase properties or their financial burden of repaying mortgages. If long-term interest rate risk is a key concern to them, an option worth considering is the Fixed Rate Mortgage Scheme.

"Hong Kong dollar selling" amid U.S. interest rate hikes does not mean capital outflow, and will not affect the financial and monetary stability of Hong Kong, said Paul Chan, financial secretary of the Hong Kong Special Administrative Region (HKSAR) government.

South Africa's rand was flat on Monday, as the dollar continued to surge after more Federal Reserve officials flagged the likelihood of aggressive interest rate hikes.

Bank of Thailand Governor ​Sethaput Suthiwartnarueput said there’s no need for the central bank to “undertake heroically large rate hikes” as the country’s economy is only expected to return to pre-pandemic levels at the end of the year.