Hong Kong Paces Fed With Hike in Challenge to Heady Housing Boom
- HKMA raises interest rates by quarter percentage point
- Local banks have been reluctant to pass on higher costs
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Hong Kong’s de facto central bank followed the Federal Reserve and boosted interest rates for a third time since December, elevating the risk of a selloff in the world’s priciest housing market.
The Hong Kong Monetary Authority boosted borrowing costs by 25 basis points to 1.5 percent after the Fed raised its target range by the same amount. The move registered swiftly in markets, with the city’s one-month interbank rate, known as Hibor, jumping the most in six months, and a gauge of property stocks in Hong Kong retreating more than 1 percent.