Hong Kong central bank leaves interest rate unchanged, tracking Fed
2023.11.02 00:42
© Reuters. FILE PHOTO: A taxi drives in front of skyscrapers at the central business district, including AIA Central, China Construction Bank (CCB) Tower, Bank of China Tower, Cheung Kong Centre, HSBC and Standard Chartered Bank headquarters, in Hong Kong, China Aug
HONG KONG (Reuters) -The Hong Kong Monetary Authority (HKMA) on Thursday left its base rate charged through the overnight discount window unchanged at 5.75%, tracking a move by the U.S. Federal Reserve to keep rates steady.
The U.S. central bank held interest rates steady on Wednesday, pausing its aggressive monetary tightening to assess if conditions are restrictive enough to tame inflation.
HSBC Holdings (NYSE:) also said it would keep its best lending rate in Hong Kong unchanged at 5.875%.
HKMA said it is premature to conclude whether the U.S. rate hike cycle has been completed, and the high interest-rate environment is likely to last for some time.
“The Hong Kong dollar exchange rate remains stable, and the Hong Kong dollar interbank rates might remain high for some time,” HKMA said in a statement, adding that local financial and monetary markets continue to operate in a smooth and orderly manner.
The public should carefully assess and manage the relevant risks when making property purchase, mortgage or other borrowing decisions, HKMA said.
Hong Kong’s monetary policy moves in lock-step with the United States as the city’s currency is pegged to the greenback in a tight range of 7.75-7.85 per dollar.
