The Hong Kong Monetary Authority set the Base Rate at 4.25% with immediate effect, following a 25 basis point increase in the target range for the U.S. federal funds rate. Under the preset formula, the Base Rate is the higher of 50 basis points above the lower end of the prevailing federal funds target range or the average of the five-day moving averages of overnight and one-month Hong Kong Interbank Offered Rates. Those measures stood at 4.25% and 2.50%, respectively. The Base Rate underpins Discount Rates for repurchase transactions through the Discount Window.
2026-09-17Hong Kong Monetary Authority
Hong Kong Monetary Authority raises Base Rate by 25 basis points to 4.25%
The Hong Kong Monetary Authority raised the Base Rate by 25 basis points to 4.25% with immediate effect, following the increase in the U.S. federal funds target range. The rate was determined under the preset formula and remains the basis for calculating Discount Window repurchase rates.