HKMA adjusts base rate to 4.25%

It follows the 25-basis point downward adjustment in the funds rate of the West.  

The Base Rate has been set at 4.25% with immediate effect according to a pre-set formula, following the adjustment in the US federal funds targets, the Hong Kong Monetary Authority (HKMA) announced on 30 October 2025.  

This followed the 25-basis point downward adjustment in the target range for the US federal funds rate on 29 October 2025.

Fifty basis points above the lower end of the prevailing target range for the US federal funds rate is 4.25%, whilst the average of the five-day moving averages of the overnight and one-month HIBORs is 3.21%, the HKMA said.

The base rate is the interest rate forming the base upon which the discount rates for repurchase transactions through the discount window are computed.