Hong Kong Central Bank Raises Interest Rate After Fed Move

CREDIT INTEREST RATE - HONG KONG. The Hong Kong Monetary Authority (HKMA) on Thursday raised its base rate charged through the overnight discount window by 75 basis points to 2%, hours after the U.S. Federal Reserve delivered a rate hike of the same margin.

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Hong 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.

The Fed raised its target interest rate by three-quarters of a percentage point, the most by the U.S. central bank since 1994, as it seeks to tame red-hot inflation.