Pursuits
Hong Kong Raises Base Rate After Fed, Sees Potential Outflow
- City follows Fed's quarter-point move to maintain dollar peg
- HSBC leaves best lending rate unchanged citing ample liquidity
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The Hong Kong Monetary Authority raised its base rate for the first time in nine years, following the U.S. Federal Reserve’s lead overnight, and flagged the risk of rising capital outflows from the city.
Hong Kong’s key rate was raised to 0.75 percent Thursday, from 0.5 percent, HKMA said. Because Hong Kong’s currency is pegged to the U.S. dollar, the city’s monetary policy typically moves in line with the Fed.