Hong Kong Monetary Authority raises base rate to 1.25%
Updated 15:57, 05-May-2022

The Hong Kong Monetary Authority raised base rate by 50 basis points to 1.25 percent on Thursday, following the U.S. Federal Reserve's rate hike of the same margin.

Hong Kong dollar exchange rate to the greenback is anchored in the range of 7.75 to 7.85.

"The rate hike in the U.S. will not affect Hong Kong's financial and monetary stability," said Eddie Yue, chief executive of the Hong Kong Monetary Authority.

The Federal Reserve announced a rate hike of half a percentage point and balance sheet reduction arrangements on Wednesday.

Yue said these are within market expectation while cautioned that the U.S. should speed up its monetary tightening to tackle inflation.

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