The Hong Kong Monetary Authority lifts rates by 25 BPs

Reuters reported that the Hong Kong Monetary Authority (HKMA) on Thursday lifted its base rate charged through the overnight discount window by 25 basis points to 5.25%, hours after the U.S. Federal Reserve delivered a rate rise of the same margin.

´´Hong Kong's monetary policy moves in lock-step with the U.S. as the city's currency is pegged to the greenback in a tight range of 7.75 to 7.85 per dollar.

"The Fed's rate-hike decision is consistent with market expectation, but there will continue to be considerable uncertainties on the interest rate path in the US," HKMA said in a statement.´´

HKD/USD is trading at 0.12736.