Hong Kong central bank raises interest rate after Fed hike

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Hong Kong central bank raises interest rate after Fed hike
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The Hong Kong Monetary Authority raised its base rate charged through the overnight discount window by 25 basis points to 5 percent, hours after the U.S. Federal Reserve delivered a rate hike of the same margin. | Reuters

HONG KONG – The Hong Kong Monetary Authority on Thursday raised its basecharged through the overnight discount window by 25 basis points to 5 percent, hours after the U.S.

Federal Reserve delivered aHong Kong’s monetary policy moves in lock-step with the United States as the city’s currency is pegged to the greenback in a tight range of 7.75-7.85 per dollar.In announcing its latest policy decision, the U.S. central bank scaled back to a quarter-percentage-pointincrease after a year of larger hikes and Fed Chair Jerome Powell suggested a “couple” more hikes coming.

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