HKMA Raises Base Rate To 2 Percent

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2018-03-22 HKT 08:59

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  • The HKMA's move mirrors that of the US Federal Reserve. Photo: Shutterstock

    The HKMA's move mirrors that of the US Federal Reserve. Photo: Shutterstock

The Hong Kong Monetary Authority announced on Thursday that the Base Rate was adjusted upward by 25 basis points to 2 percent with immediate effect according to a pre-set formula.

The increase in the Base Rate follows the US Federal Reserve's decision to raise its key interest rate by a similar percentage margin to a target range of 1.5 - 1.75 percent on Wednesday.

The Base Rate is currently set at either 50 basis points above the lower end of the prevailing target range for the US federal funds rate or the average of the five-day moving averages of the overnight and one-month Hong Kong Interbank Offered Rates, whichever is the higher.