2024 RT Amination Banner.gif

China Daily

News> Hong Kong> Content
Published: 11:43, March 17, 2022 | Updated: 14:01, March 17, 2022
Hong Kong ups base rate after US Fed interest rate hike
By Xinhua
Published:11:43, March 17, 2022 Updated:14:01, March 17, 2022 By Xinhua

This undated photo shows the building of the Hong Kong Monetary Authority. (PHOTO / IC)

HONG KONG - The Hong Kong Monetary Authority announced Thursday that the base rate was adjusted upward to 0.75 percent with immediate effect.

The adjustment came as the US Federal Reserve on Wednesday decided to raise the target range for the federal funds rate by a quarter percentage point to 0.25 to 0.50 percent

The adjustment came as the US Federal Reserve on Wednesday decided to raise the target range for the federal funds rate by a quarter percentage point to 0.25 to 0.50 percent. 

 It is the first time raise of the benchmark interest rate by the US Federal Reserve since 2018.

ALSO READ: HK entrepreneur: City will ride out the dark before the dawn

Following the upward adjustment, 50 basis points above the lower end of the prevailing target range for the US federal funds rate is 0.75 percent, while the average of the five-day moving averages of the overnight and one-month Hong Kong Interbank Offered Rates  is 0.14 percent. The base rate was therefore set at 0.75 percent according to a pre-set formula, the HKMA said.

ALSO READ: HKMA studying issuance of digital currency for retail use

The base rate is the interest rate forming the foundation upon which the discount rates for repurchase transactions through the discount window are computed.  


Share this story

CHINA DAILY
HONG KONG NEWS
OPEN
Please click in the upper right corner to open it in your browser !