FX.co ★ Hong Kong Holds Base Rate Steady After Fed Action

The Hong Kong Monetary Authority (HKMA) decided to maintain its base rate at 4.75% on May 8. This decision came after the U.S. Federal Reserve opted to keep its key benchmark steady within the 4.25%–4.50% range for the third consecutive session. Both central banks are currently exercising caution, observing the inflationary pressures arising from increased tariffs implemented under the Trump administration. The HKMA's policy stance is in line with that of the U.S. due to the Hong Kong dollar's peg to the U.S. dollar.