Hong Kong sets its Base Rate at 4.25 percent after the Fed increase
The Hong Kong Monetary Authority set its Base Rate at 4.25 percent with immediate effect Thursday.
That figure came from a formula. The rate is the higher of two calculations: 50 basis points above the lower end of the Federal Reserve's target range, or an average built from overnight and one month HIBOR.
The first calculation produced 4.25 percent after Wednesday's Fed increase. The HIBOR calculation produced 2.50 percent.
The Base Rate anchors the Discount Rates for repurchase transactions through the authority's Discount Window. The release does not set commercial banks' retail lending or deposit rates.
