Hong Kong Holds Rate as Fed Signals End to Tightening Cycle
- HKMA maintains base rate at 5.75% after Fed pauses rate hikes
- HSBC maintains best lending rate following HKMA announcement
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The Hong Kong Monetary Authority maintained its base rate at 5.75% on Thursday after the US Federal Reserve held its own interest rate, potentially ending its aggressive tightening cycle.
Hong Kong’s borrowing costs have spiked in the last two years as the Fed raised rates to combat inflation. The city’s base rate moves in lockstep with the Fed, given the local currency’s peg to the greenback.