Hong Kong Holds Rate Steady as Fed Presses Pause on Hiking Cycle

(Bloomberg) — The Hong Kong Monetary Authority maintained its base rate at 5.75% on Thursday as the U.S. Federal Reserve paused its cycle of hiking rates.

Hong Kong’s borrowing costs have spiked in the last two years as the Fed embarked on an aggressive tightening cycle to combat inflation — the city’s base rate moves in lockstep with the Fed, given the local currency’s peg to the greenback.