Hong Kong Monetary Authority leaves interest rates unchanged, tracking Fed move
TLT•The Hong Kong Monetary Authority kept its base interest rate at 4.25% on Thursday, following the US Federal Reserve’s decision to hold rates steady. The Hong Kong dollar was last at 7.8452 per dollar.
1. Rate held steady
The Hong Kong Monetary Authority left its base interest rate unchanged at 4.25%, following the Federal Reserve’s decision to hold rates steady. Hong Kong’s monetary policy moves in step with the United States because the Hong Kong dollar is pegged to the US dollar in a range of 7.75 to 7.85 per dollar.
2. HKMA flags uncertainty
The HKMA said US interest-rate adjustments are subject to considerable uncertainty and will depend on inflation, labor-market and other economic data, which may influence Hong Kong’s interest-rate environment. It added that the outlook for the Hong Kong dollar and interbank rates can also vary with risk appetite for carry trades, Hong Kong dollar supply and demand, capital-market activity and seasonal factors.
