HKMA announces a base rate hike by 25 bps

Following the Fed rate hike decision yesterday, the Hong Kong Monetary Authority (HKMA), Hong Kong’s central bank, raised its base rate by 25 bps.

Key Points:

The Base Rate is currently set at 50 basis points above the prevailing US Fed Funds Target Rate or the average of the five-day moving averages of the overnight and one-month HIBORs, whichever is the higher.

Thus, with the Fed boosting its FF target rate, the HKMA have done the same with the base rate

Now at 1.25% (from 1%)