Hong Kong Lifts Base Rate by 25Bps After FOMC Decision

The Hong Kong Monetary Authority (HKMA) raised the base rate by 25bps to 5.75% on July 27th, hours after the US Federal Reserve delivered a rate hike of a similar margin.

The latest move brought borrowing costs in the city to the highest level since January 2008.

Hong Kong has kept its monetary policy in lockstep with the Fed since 1983 to preserve the local currency's peg to the US dollar.