Hong Kong Follows Fed With Rate Hike, Adding to Economy’s Woes

(Bloomberg) — The Hong Kong Monetary Authority raised its benchmark interest rate for a sixth time, moving in lockstep with the US Federal Reserve.

The base rate was increased by 75 basis points to 4.25% on Thursday, hours after the Fed boosted its rates by the same magnitude to tame severe inflation. Hong Kong’s de-facto central bank raises rates in tandem with the Fed, given the local dollar’s peg to the U.S. dollar.