Hong Kong Monetary Authority increases base rate by 25 bps to 2%

By Wendy Van Sickle

Columbus, Ohio, March 22 – Hong Kong Monetary Authority adjusted the base rate upward by 25 basis points to 2%, the authority announced in a notice on Thursday.

The base rate increase took effect immediately and followed the 25 bps increase on Wednesday in the target range for the United States Federal Funds rate, according to the notice.

The base rate is the interest rate forming the foundation upon which the discount rates for repurchase transactions through the discount window are computed.

The base rate is set at the higher of 50 bps above the lower end of the prevailing target range for the U.S. Federal Funds rate or the average of the five-day moving averages of the overnight and one-month Hong Kong Interbank Offered Rates.

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