Hong Kong Maintains Base Rate at 4% After Fed Decision

2026-07-30 00:47 By Farida Husna 1 min. read

The Hong Kong Monetary Authority (HKMA) kept its base rate unchanged at 4.0% on July 30, 2026, following the U.S.

Federal Reserve's decision to leave the federal funds target range unchanged at its fifth FOMC meeting of the year.

The move reflects Hong Kong's Linked Exchange Rate System, which pegs the Hong Kong dollar within a 7.75–7.85 per U.S.

dollar trading band, requiring local interest rates to follow U.S.

monetary policy closely regardless of domestic economic conditions.

The HKMA's latest decision came against the backdrop of a resilient domestic economy.

Hong Kong's annual GDP growth hit a near five-year high of 5.9% in Q1 of 2026, driven by robust domestic demand and strong external trade.

However, businesses continued to contend with geopolitical uncertainty and lingering supply chain disruptions stemming from the Middle East conflict.

Both the Fed and the HKMA cut their benchmark rates by a cumulative 75bps in 2025, after delivering a combined 100bp of rate cuts in 2024.



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Hong Kong Maintains Base Rate at 4% After Fed Decision
The Hong Kong Monetary Authority (HKMA) kept its base rate unchanged at 4.0% on July 30, 2026, following the U.S. Federal Reserve's decision to leave the federal funds target range unchanged at its fifth FOMC meeting of the year. The move reflects Hong Kong's Linked Exchange Rate System, which pegs the Hong Kong dollar within a 7.75–7.85 per U.S. dollar trading band, requiring local interest rates to follow U.S. monetary policy closely regardless of domestic economic conditions. The HKMA's latest decision came against the backdrop of a resilient domestic economy. Hong Kong's annual GDP growth hit a near five-year high of 5.9% in Q1 of 2026, driven by robust domestic demand and strong external trade. However, businesses continued to contend with geopolitical uncertainty and lingering supply chain disruptions stemming from the Middle East conflict. Both the Fed and the HKMA cut their benchmark rates by a cumulative 75bps in 2025, after delivering a combined 100bp of rate cuts in 2024.
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Hong Kong Holds Base Rate at 4% After Fed Decision
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