Business News Asia
The Hong Kong Monetary Authority (HKMA) raised interest rates by 75 basis points to 2.75% after the U.S. Federal Reserve also raised rates by 0.75%.
Hong Kong’s monetary policy moves in lockstep with the U.S. This is because the city’s currency is pegged to the dollar at between HKD7.75 and HKD7.85 per dollar.
Fed Chairman Jerome Powell said at a press conference after the interest rate announcement that he does not believe the U.S. economy is in a recession, but it is weakening.