Free Trial

MNI BRIEF: HKMA Hikes Base Rate 50bp; Tracks Fed

MNI (Beijing)

Hong Kong’s Base Rate was increased 50bp to 4.75%, the highest rate since January 2008, according to the Hong Kong Monetary Authority (HKMA) on Thursday.

The rate hike followed the Federal Reserve's decision to lift U.S. interest rates by the same amount on Wednesday. It was the seventh hike this year. (See MNI FED WATCH: Powell Promises Tighter Policy, Held For Longer)

The HKMA mirrors U.S. monetary policy moves to maintain its Linked Exchange Rate System that pegs the Hong Kong dollar to the U.S. dollar. The currency peg was recently defended by HKMA Chief Executive Eddie Yue, who said hedge fund speculators will lose money if they bet on the peg breaking. (SEE MNI Brief: Hong Kong Dollar Speculators Will Fail - HKMA CEO)

MNI Beijing Bureau | lewis.porylo@marketnews.com
MNI Beijing Bureau | lewis.porylo@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.