HONG KONG : The Hong Kong Monetary Authority (HKMA) on Thursday left its base rate charged through the overnight discount window unchanged at 5.50 per cent, tracking the move of the U.S. Federal Reserve.
The U.S. Federal Reserve paused interest rate hikes as was widely expected but signalled that it could raise rates by another half a percentage point by year-end.
Hong Kong's monetary policy moves in lock-step with that of the U.S. as the city's currency is pegged to the dollar in a tight range of 7.75-7.85 per dollar.
"As the high interest rate environment in the U.S. may last a little longer, the high interest rate environment in Hong Kong may also continue a little longer," HKMA Chief Executive Eddie Yue told a media briefing.
The HKMA will closely monitor market developments and maintain monetary and financial stability, Yue added.