FX.co ★ Hong Kong Cuts Base Rate to 4.0% After FOMC Action

On December 11, the Hong Kong Monetary Authority (HKMA) reduced its base rate by 25 basis points to 4.0%. This decision, reflecting the U.S. Federal Reserve's actions, lowered borrowing costs to their lowest point since October 2022. It represents the third rate reduction by the HKMA in this calendar year. This adjustment, enacted via the overnight discount window, underscores Hong Kong's ongoing monetary policy synchronization with the United States, given the city's currency is tightly pegged to the U.S. dollar, fluctuating between 7.75 and 7.85 per dollar.