Honguecongue - Taxa De Juro

The Hong Kong Monetary Authority/HKMA lowered its base rate by 25 basis points to 2.25 percent on September 19th, 2019. It was the second rate cut this year, tracking a similar move by the US Federal Reserve as Hong Kong's currency is pegged to the US dollar. The central bank sets its base rate at either 50 basis points above the lower end of the prevailing target range for the US federal funds rate or the average of the five-day moving averages of the overnight and one-month Hong Kong Interbank Offered Rates (HIBORs), whichever is the higher. Looking ahead, "HKD interest rates should track USD interest rates, but short-term interest rate movements are affected by changes in supply and demand of HKD funding. Given the uncertainties about interest rates outlook in the US, the public should continue to manage risks prudently" the HKMA chief executive Norman Chan said.

The Hong Kong Monetary Authority/HKMA lowered its base rate by 25 basis points to 2.5 percent on August 1st, 2019. This marked the first rate cut since late 2008, tracking a similar move by the US Federal Reserve as Hong Kong's 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 HIBOR (Hong Kong Interbank Offered Rate), whichever is higher. However, HKMA warned that HIBOR would continue to be influenced by local supply and demand conditions and may not immediately follow the move in LIBOR. Also, the city's financial market and currency has not been affected by the recent social unrest in the city, added HKMA Chief Executive, Norman Chan.