Hong Kong Slashes Base Rate by 25Bps After FOMC Move

The Hong Kong Monetary Authority (HKMA) reduced its base rate by 25bps to 5.0% on November 8th, hours after the US Federal Reserve slashed interest rates by the same margin following a 50bps reduction in September.

Monetary policy in the Asian finance hub moved in line with the US as the local currency is pegged to the greenback.

This decision brought borrowing costs in the city to their lowest level since February 2023.