Key facts
- Hong Kong's base interest rate remains at 4.25%.
- The Hong Kong dollar was last trading at 7.8452 per US dollar.
- HKMA stated US rate adjustments depend on inflation and labor market data.
The Hong Kong Monetary Authority (HKMA) maintained its base interest rate at 4.25% on Thursday, mirroring the US Federal Reserve's decision to keep its rates unchanged. Hong Kong's monetary policy operates in tandem with the US as its currency is pegged to the US dollar within a tight range of 7.75 to 7.85 per dollar. The Hong Kong dollar was last quoted at 7.8452 per dollar. The HKMA indicated that future US interest rate adjustments will be contingent on inflation, labor market, and other economic data, which in turn will influence Hong Kong's interest rate environment.