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HomeEconomyHong Kong central bank hikes after Fed rate hike, HSBC follows

Hong Kong central bank hikes after Fed rate hike, HSBC follows


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HONG KONG (Reuters) – The Hong Kong Monetary Authority (HKMA) said on Thursday it would raise the base rate charged through the overnight discount window The base point becomes 4. %, hours after the Fed raised interest rates by the same amount. The U.S. central bank raised interest rates by half a percentage point and expects to add at least one more basis point of year-end borrowing cost rises

, along with rising unemployment and near-stagnation in economic growth.

“A US interest rate hike will not affect Hong Kong’s financial and monetary stability,” HKMA chief executive Eddie Yue told reporters. “Our currency and financial markets continue to function in a smooth and orderly manner. The linked exchange rate system (linked exchange rate system) also continues to function well.”

Hong Kong Monetary Policy In sync with US policy, as the city’s currency is pegged to the dollar and fluctuates within a tight range of 7. -7. per dollar.

HSBC Holdings (NYSE: 200 HSBC

) Tracking interest rate hikes , said it was raising Hong Kong’s prime lending rate

by 5 basis points. % valid for 12 months .

The market generally expects that the US dollar interest rate will continue to rise, coupled with seasonal demand and the local stock market to drive the demand for Hong Kong dollar funds, the Hong Kong Monetary Authority said that the Hong Kong dollar Interbank interest rates are likely to remain high for some time.

“The public should worry about the possibility that bank deposit and loan interest rates may rise further be prepared, and carefully assess and manage the associated risks when buying property, taking out mortgages or making other lending decisions,” Yue added.

Hong Kong private housing prices fell Monthly prices fell 2.4% in October this year, the biggest drop since November 52, hit by rising interest rates and a gloomy economic outlook.



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