The Hong Kong Monetary Authority (HKMA) raised the base rate by 75 basis points to 2.75 percent on July 28th, 2022, marking the fourth rate hike this year and hitting the highest level since July 2019, hours after the US Federal Reserve delivered a rate hike of the same margin as it stepped up efforts to cool surging inflation. Monetary policy in the financial hub moves in lockstep with the Fed given the Hong Kong dollar’s peg with the US currency in a tight range of 7.75-7.85 per dollar. The rate hike comes as COVID-19 restrictions continue to weigh on the economy and hurt employment. The Fed’s hawkish path this year has fueled debate about the effectiveness of the linked exchange rate system, according to Bloomberg News. Meantime, HKMA chief Eddie Yue said he expects the city's overnight and one-month interbank rate to continue to rise, at a much faster pace. Separately, Financial Secretary Paul Chan said Hong Kong’s forex reserves can support the system even amid capital outflows. source: Hong Kong Monetary Authority

Interest Rate in Hong Kong averaged 3.09 percent from 1998 until 2022, reaching an all time high of 8 percent in May of 2000 and a record low of 0.50 percent in December of 2008. This page provides the latest reported value for - Hong Kong Interest Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. Hong Kong Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on August of 2022.

Interest Rate in Hong Kong is expected to be 2.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Hong Kong Interest Rate is projected to trend around 3.75 percent in 2023, according to our econometric models.

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Hong Kong Interest Rate



Related Last Previous Unit Reference
Interest Rate 2.75 2.00 percent Jul 2022
Money Supply M1 3319053.00 3436022.00 HKD Million Jun 2022
Money Supply M0 595954.00 595354.00 HKD Million Jun 2022
Money Supply M2 16303463.00 16237250.00 HKD Million Jun 2022
Money Supply M3 16339898.00 16271522.00 HKD Million Jun 2022
Foreign Exchange Reserves 441700.00 447200.00 USD Million Jul 2022
Banks Balance Sheet 27094513.00 27035245.00 HKD Million Jun 2022
Loans to Private Sector 10986614.00 11004934.00 HKD Million Jun 2022

Hong Kong Interest Rate
In Hong Kong the interest rates decisions are taken by the Hong Kong Monetary Authority (HKMA). The main interest rate is Base rate, adjusted with accordance to the Hong Kong dollar’s demand or supply.
Actual Previous Highest Lowest Dates Unit Frequency
2.75 2.00 8.00 0.50 1998 - 2022 percent Daily

News Stream
Hong Kong Raises Base Rate by 75Bps After Fed Move
The Hong Kong Monetary Authority (HKMA) raised the base rate by 75 basis points to 2.75 percent on July 28th, 2022, marking the fourth rate hike this year and hitting the highest level since July 2019, hours after the US Federal Reserve delivered a rate hike of the same margin as it stepped up efforts to cool surging inflation. Monetary policy in the financial hub moves in lockstep with the Fed given the Hong Kong dollar’s peg with the US currency in a tight range of 7.75-7.85 per dollar. The rate hike comes as COVID-19 restrictions continue to weigh on the economy and hurt employment. The Fed’s hawkish path this year has fueled debate about the effectiveness of the linked exchange rate system, according to Bloomberg News. Meantime, HKMA chief Eddie Yue said he expects the city's overnight and one-month interbank rate to continue to rise, at a much faster pace. Separately, Financial Secretary Paul Chan said Hong Kong’s forex reserves can support the system even amid capital outflows.
2022-07-28
Hong Kong Raises Base Rate After Fed Move
The Hong Kong Monetary Authority (HKMA) raised the base rate by 75 basis points to 2.0 percent on June 16th, 2022, the third time this year, hours after the US Federal Reserve delivered a rate hike of the same margin as it seeks to cool surging inflation. Monetary policy in the financial hub moves in lockstep with the Fed given the Hong Kong dollar’s peg with the US currency in a tight range of 7.75-7.85 per dollar. The rate hike, effective immediately, comes just as the economy gradually rebounds from the impact of strict COVID-19 restrictions. Hong Kong's economy shrank 4.0% yoy in Q1 of 2022, swinging from a downwardly revised 4.7% growth in the prior period and marking the first contraction since Q4 2020 which was also the steepest pace since Q3 2020.
2022-06-16
Hong Kong Raises Base Rate After Fed Decision
The Hong Kong Monetary Authority (HKMA) raised the base rate by 50 basis points to 1.25 percent on May 5th, 2022, tracking a similar move by the US Federal Reserve as its currency is pegged to the US dollar. The central bank sets its base rate through a formula that is 50 basis points above the prevailing US Fed Funds Target or the average of the five-day moving averages of the overnight and one-month HIBORS (Hong Kong Interbank Offered Rate), whichever is higher. The rate hike comes at a time when the Hong Kong's economy has been ravaged by a resurgence of COVID-19 cases. The city's economy shrank by 4.0% yoy in Q1 following months of social distancing rules and closed business. The HKMA has repeatedly warned Hong Kong's borrowers about the forthcoming cycle of higher interest rates while preparing to intervene in the market to support Hong Kong's weakening currency as capital flowed out of the city following high-yielding US rates.
2022-05-05