Heurist Finance

HKMA holds base rate at 4.25% after Fed hold

South China Morning Post ·
HKMA holds base rate at 4.25% after Fed hold
  • The HKMA kept its base rate unchanged at 4.25%, hours after the US Federal Reserve held its benchmark rate steady.
  • The FOMC, chaired by Kevin Warsh, held its target range at 3.75% to 4% on Wednesday local time, a decision widely expected by the market.
  • The HKMA follows Fed moves because the Hong Kong dollar is pegged to the US dollar. In September, the HKMA followed the Fed in raising its key rate by a quarter point, the first such increase since 2023.

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