Hong Kong Central Bank Hikes Interest Rate following Fed Move

On Thursday, the Hong Kong Monetary Authority followed the US Federal Reserve in raising its benchmark interest rate, continuing a trend of rate increases that began last year.

The Hong Kong Monetary Authority (HKMA) said Thursday that the base rate has been lifted by 25 basis points to 5%, only hours after the Federal Reserve boosted its rate by the same margin. The Hong Kong dollar is fixed at 7.75 to 7.85 U.S. dollars, hence its value moves in tandem with the Federal Reserve’s.

After a year of higher rate hikes, the US central bank announced a quarter-point increase, and Fed Chair Jerome Powell indicated a “couple” more raises were on the way.