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2026-09-17 08:28:09
[Hong Kong Monetary Authority Raises Interest Rate by 25 Basis Points to 4.25%] The Hong Kong Monetary Authority (HKMA) announced in a statement that it would raise its benchmark interest rate by 25 basis points to 4.25%. This is the first adjustment to the benchmark interest rate by the HKMA since 2023, ending the previous period of interest rate stability. This rate hike is a direct response to the Federal Reserve's policy change on the same day. The HKMA stated in its statement that following the Fed's policy is to maintain the Hong Kong dollar's peg to the US dollar. Under this system, the Hong Kong dollar is pegged to the US dollar, and Hong Kong's monetary policy must be linked to the US to ensure exchange rate stability. Despite the increase in the benchmark interest rate, the market remains cautious about the actual changes in local credit costs in Hong Kong. As is customary, major Hong Kong banks usually announce their own interest rate adjustment plans later that day after the HKMA's adjustment of the benchmark rate, with changes to the prime lending rate being particularly crucial. (Xinhua Finance)
