Published:
Logo from HKMA
HKMA raises its base rate to 5.75%
The new rate took effect on 27 July.
The Hong Kong Monetary Authority (HKMA) has raised its base rate to 5.75% in response to the US Fed’s recent 25-basis points (bps) hike.
The city central bank’s new rate took effect on 27 July. Last 23 March, the central bank increased its rate to 5.25%.
According to HKMA's pre-set formula, the base rate is set either at 50bps above the lower end of the prevailing target range for the US Fed rate or the average of the five-day moving averages of the overnight and one-month Hong Kong Interbank Offered Rates (HIBORs), whichever is the higher.
The former was 5.75%, whilst the latter was 4.78%, thus the base rate was set at 50bps above the lower end of the prevailing target range for the US Fed rate.
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