HONG KONG - The Hong Kong Monetary Authority on Thursday left its base rate charged through the overnight discount window unchanged at 5.75%, tracking a move by the U.S. FederalHONG KONG - The Hong Kong Monetary Authority on Thursday left its base rate charged through the overnight discount window unchanged at 5.75%, tracking a move by the U.S. Federal Reserve to keep rates steady.
The U.S. central bank held interest rates steady as expected at the end of a two-day policy meeting but projected another rate hike by year end and monetary policy significantly tighter through 2024 than previously expected. Hong Kong's monetary policy moves in lock-step with the United States as the city's currency is pegged to the greenback in a tight range of 7.75-7.85 per dollar.
HKMA said it is premature to conclude whether the U.S. rate hike cycle has been completed while the high interest rate environment is likely to last for some time. "The financial and monetary markets of Hong Kong continue to operate in a smooth and orderly manner," HKMA said, adding the Hong Kong dollar exchange rate remains stable and the Hong Kong dollar interbank rates might remain high for some time.