Business News Asia
The Hong Kong Monetary Authority (HKMA) raised its benchmark interest rate by 0.75% to 3.5% on Thursday (Sept. 22), after the U.S. Federal Reserve raised rates by the same amount.
Hong Kong’s monetary policy moves in lockstep with the US. This is because the city’s currency is pegged to the dollar in a range of 7.75 to 7.85 per dollar.
The Fed raised interest rates for a third time Wednesday, by 75 basis points, and the signal that borrowing costs will continue to rise reinforces the Fed’s determination not to give up in the fight against inflation.