Hong Kong Monetary Authority raises rates for first time since July 2023
An attendant walks outside the entrance to Hong Kong Monetary Authority in Hong Kong, China November 10, 2015. Picture taken November 10, 2015. REUTERS/Bobby Yip
Read a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST
Tap here to return to FAST
FAST
HONG KONG, Sept 17 : The Hong Kong Monetary Authority raised its base interest rate charged via the overnight discount window by 25 basis points to 4.25 per cent on Thursday, tracking a hike by the U.S. Federal Reserve.
Hong Kong’s monetary policy moves in lock-step with the United States as the city’s currency is pegged to the U.S. dollar in a tight range of 7.75 to 7.85 per dollar. It was the HKMA’s first rate hike since July 2023.
Hong Kong’s de-facto central bank said the Fed’s decision to raise interest rates was in line with market expectations and reflected the committee’s concerns about the outlook for inflation.
“The Hong Kong dollar and U.S. dollar interest rate differential will widen, and carry trade activities may cause the Hong Kong dollar to ease toward the weak side of the band,” HKMA chief executive Eddie Yue told reporters.
Guess Word
Crack the word, one row at a time
Buzzword
Create words using the given letters
Mini Sudoku
Tiny puzzle, mighty brain teaser
Mini Crossword
Small grid, big challenge
Word Search
Spot as many words as you can
The Federal Reserve raised interest rates on Wednesday for the first time in three years, and flagged more hikes in the coming months.
U.S. interest rate adjustments are subject to considerable uncertainty and may influence the interest rate environment in Hong Kong, and the public should carefully manage interest rate risks when making financial decisions, Yue added.
Hong Kong’s monetary and financial markets have continued to operate in an orderly manner, and banks would take into consideration factors including funding supply and demand, the level of interest rates, and their own funding cost structures when making decisions on interest rates, the HKMA said.
Source: Reuters
Sign up for our newsletters
Get the CNA app
Stay updated with notifications for breaking news and our best stories
Get WhatsApp alerts
Join our channel for the top reads for the day on your preferred chat app
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST
Tap here to return to FAST
FAST
