Hong Kong has decided to increase the interest rate after the Fed’s 75 basis point rate hike.
After the US Federal Reserve (Fed) increased the interest rate by 75 basis points, China’s Hong Kong Special Administrative Region increased at the same rate due to the dollar-linked exchange rate.
The Hong Kong Monetary Authority (HKMA) increased the benchmark interest rate by 75 basis points to 2 percent. The Fed had increased its short-term policy rate by 75 basis points to 1.50-1.75 percent. The increase was the biggest rate hike since 1994.
Last month, the HKMA followed the Fed’s decision to increase interest rates, raising the benchmark interest rate by 50 basis points to 1.25%. The interest rate reached the level in March 2022, when central banks worldwide started applying interest rate cuts for cheap loans to support the economic recovery at the beginning of the Covid-19 epidemic.
