HONG KONG (Reuters) -The Hong Kong Monetary Authority (HKMA) on Thursday left its base interest rate charged through its overnight discount window unchanged at 5.50%, tracking action by the U.S. Federal Reserve.
The Fed paused interest rate hikes on Wednesday as widely expected but signalled 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 its U.S. counterpart in a range of 7.75-7.85 Hong Kong dollars per U.S. dollar.
HSBC said it has kept its key lending rate in Hong Kong at 5.75% and will not change its savings rate on Hong Kong dollar savings deposits.
“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 said.
(Reporting by Donny Kwok; Editing by Muralikumar Anantharaman and Christopher Cushing)
