HKMA Raises Base Rate by 25 Basis Points

The Hong Kong Monetary Authority raised its base interest rate by 25 basis points to 4.25% on Thursday morning, following a matching move by the United States Federal Reserve. It marks the first rate hike by the de facto central bank since July 2023. Local borrowing costs track American monetary policy because the USD/HKD exchange rate is pegged within a tight band of 7.75 to 7.85.