The Hong Kong Monetary Authority (HKMA) raised the base rate by 50 basis points to 4.75 percent on December 15th, the seventh rate hike this year, hours after the US Federal Reserve delivered a similar rate hike, as it stuck with efforts to cool surging inflation. The latest move brought borrowing costs to the highest level since January 2008. 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 slower pace of rate hikes was needed, as Hong Kong's economy registered an unexpected contraction in Q3 of 2022 following weak external trade and feeble private consumption. The city's de facto central bank said US rate hikes will not affect the financial and monetary stability of Hong Kong, while financial and money markets will continue to operate in a smooth and orderly manner. source: Hong Kong Monetary Authority
Interest Rate in Hong Kong averaged 3.10 percent from 1998 until 2022, reaching an all time high of 8.00 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 January of 2023.
Interest Rate in Hong Kong is expected to be 5.25 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations.