Hong Kong Increases Interest Rates

After the Fed increased the policy rate by 50 basis points, other central banks followed suit. Hong Kong Monetary Authority also increased the policy rate to 1.25% due to the increase in inflation.

Hong Kong Increases Interest Rates. In line with market expectations, the Fed announced yesterday that it had decided to increase interest rates by 50 basis points. After the US Federal Reserve's interest rate decision, Hong Kong, along with the Gulf countries, increased the policy rate by 50 basis points to 1.25%. After the first rate hike in March, the policy rate was increased in Hong Kong. On the other hand, local banks will evaluate whether they will increase their borrowing costs. Banks are not expected to increase interest rates due to the slowdown in the Hong Kong and Chinese economies.

Fed raises interest rates by 50 basis points

In its May meeting, the Fed increased the policy rate by 50 basis points in line with the expectations. This was recorded as the highest rate increase in 22 years. It was stated that the balance sheet will be reduced by 47.5 billion dollars per month as of June 1, and a monthly decrease of 95 billion dollars in the next 3 months. The text reads, “We are very cautious about inflation risks.”