The Hong Kong Monetary Authority (HKMA) boosted its base rate charged through the overnight discount window by 50 basis points to 4.75% on Thursday, just hours after the US Federal Reserve raised rates by the same percentage.
The Federal Reserve of the United States increased interest rates by a half percentage point and forecast at least another 75 basis points in rises in borrowing costs by the end of 2023, along with an increase in unemployment and a near halting of economic growth.
Hong Kong’s monetary policy follows that of the U.S., as the city’s currency is tied to the dollar in a narrow band of 7.75-7.85 per dollar.
