Hong Kong Raises Benchmark Interest Rate After Fed Tightens

(Bloomberg) — The Hong Kong Monetary Authority (HKMA) raised its benchmark interest rate by 25 basis points, after the U.S. Federal Reserve did the same, saying it wants to maintain stability in the financial system amid heightened market volatility.

The base rate was increased to 0.75% from 0.5%, the HKMA said in a statement on its website. The rate moves in lockstep with the Fed’s rate since the Hong Kong dollar is pegged to the U.S. currency.