Hong Kong Central Bank Lifts Base Rate
The Hong Kong Monetary Authority raised its benchmark rate on Thursday after the rate hike of the U.S. Federal Reserve.
The Base Rate was adjusted upward to 3.50 percent with immediate effect according to a pre-set formula.
On Wednesday, the Federal Reserve had raised the target range for the federal funds rate by 75 basis points to 3 to 3.25 percent.
Hong Kong’s Base Rate is currently set at either 50 basis points above the lower end of the prevailing target range for the US federal funds rate or the average of the five-day moving averages of the overnight and one-month Hong Kong Interbank Offered Rates, whichever is the higher.
Following the latest rate hike of the Federal Reserve, 50 basis points above the lower end of the prevailing target range for the US federal funds rate was 3.50 percent, while the average of the five-day moving averages of the overnight and one-month HIBORs was 1.82 percent.
As a result, the Base Rate was set at 3.50 percent.
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