(Yicai Global) Dec. 20 -- The Hong Kong Monetary Authority has raised its base interest rate by 25 basis points to 2.75 percent, matching the increase announced yesterday by the United States Federal Reserve.
The base rate is the foundation upon which discount rates for overnight repurchase transactions are calculated. The HKMA sets the rate at 50 basis points ahead of the Fed's target rate or the average of the five-day moving averages of the overnight and one-month Hong Kong Inter-bank Offered Rates, whichever is the higher.
This is the fourth time the Hong Kong Monetary Authority has raised interest rates this year, totaling a single percentage point gain, and the ninth since December 2015, matching the Fed hikes.
The Fed raised its target range by 25 basis points to between 2.25 percent and 2.5 percent yesterday.