The Hong Kong Monetary Authority raised its benchmark rate on Thursday after the fourth 75 basis point rate hike by the U.S. Federal Reserve.
The Base Rate was adjusted upward to 4.25 percent with immediate effect according to a pre-set formula.
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 higher.
Following the 75-basis point upward adjustment in the target range for the US federal funds rate on November 2, 50 basis points above the lower end of the prevailing target range for the US federal funds rate is 4.25 percent. Meanwhile, the average of the five-day moving averages of the overnight and one-month HIBORs is 2.73 percent.
Therefore, the Base Rate is set at 4.25 percent.
