Now the US central bank may be finished hiking interest rates. Fed Chair Jerome Powell hinted as much on Wednesday, telling reporters that “slowing down is giving us, I think, a better sense of how much more we need to do, if we need to do more.”
The Hong Kong Monetary Authority maintained its base rate at 5.75% on Thursday after the US Federal Reserve held its own interest rate, potentially ending its aggressive tightening cycle.
Hong Kong’s borrowing costs have spiked in the last two years as the Fed raised rates to combat inflation. The city’s base rate moves in lockstep with the Fed, given the local currency’s peg to the greenback.
