HONG KONG (Reuters) – The Hong Kong Monetary Authority (HKMA) on Thursday left its base rate charged through the overnight discount window unchanged at 5.50%, tracking the move of the U.S. Federal Reserve.
The U.S. Federal Reserve paused interest rate hikes as was widely expected but signalled that it could raise rates by another half a percentage point by year-end.
Hong Kong’s monetary policy moves in lock-step with that of the U.S. as the city’s currency is pegged to the dollar in a tight range of 7.75-7.85 per dollar.
“As the high interest rate environment in the U.S. may last a little longer, the high interest rate environment in Hong Kong may also continue a little longer,” HKMA Chief Executive Eddie Yue told a media briefing.
The HKMA will closely monitor market developments and maintain monetary and financial stability, Yue added.
(Reporting by Donny Kwok; Editing by Muralikumar Anantharaman)
