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.