Hong Kong central bank raises interest rates after Fed hike

HONGKONGSep 22 – The Hong Kong Monetary Authority (HKMA) raised its benchmark interest rate by 75 basis points (bp) to 3.5% on Thursday, hours after the US Federal Reserve applied a rate hike of the same margin.

HSBC it said it would raise its most advantageous lending rate in Hong Kong by 12.5 basis points to 5.125%, from 5.0%, effective September 23, its first rate hike since September 2018.

Hong Kong’s monetary policy moves in lockstep with that of the United States, as the city’s currency is pegged to the dollar in a narrow range of 7.75-7.85 to the dollar.

On Wednesday, the Federal Reserve raised interest rates by 75 basis points for the third consecutive time and signaled that borrowing costs would continue to rise, underscoring the US central bank’s determination not to give up its fight to contain inflation.

The measure of the HKMA took its basic interest to the highest since October 2008. However, Hong Kong’s finance chief said Thursday that he does not see a major risk to the city’s property market or the need to tighten property control measures. .

The Article Is In Spanish🡽

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