Hong Kong central bank raises interest rates after Fed hike
2023.05.03 20:40
© Reuters. A security guard walks past a directory board of Hong Kong Monetary Authority (HKMA) in Hong Kong December 20, 2012. REUTERS/Tyrone Siu/File Photo
HONG KONG (Reuters) – The Hong Kong Monetary Authority (HKMA) on Thursday raised its base rate charged through the overnight discount window by 25 basis points to 5.50%, hours after the U.S. Federal Reserve delivered a rate hike of the same margin.
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.
The Fed raised interest rates by a quarter of a percentage point and signalled it may pause further increases, giving officials time to assess the fallout from recent bank failures, wait on the resolution of a political standoff over the U.S. debt ceiling and monitor the course of inflation.
