Following Fed, Hong Kong Raises Benchmark Interest Rate

Hong Kong’s rate moves in lockstep with the Fed’s due to the local currency’s peg to the greenback. Photo: Bloomberg

(Bloomberg) — The Hong Kong Monetary Authority (HKMA) on Thursday raised its benchmark interest rate in line with the U.S. Federal Reserve, extending a string of rate hikes that began last year.

The base rate was increased by 25 basis points to 5% on Thursday after the Fed boosted its rate by the same magnitude, the city’s de-facto central bank said in a statement. Hong Kong’s rate moves in lockstep with the Fed’s due to the local currency’s peg to the greenback.