Hong Kong Monetary Authority raises base rate to 5.5%

The growth came from a 25-point upward adjustment or a 3.28% average HIBORs.

The Hong Kong Monetary Authority has raised its base rate to 5.5% with immediate effect.

The increase followed a 25-basis point upward adjustment in the target range for the US federal fund rate on 3 May.

The monetary board also said the growth came from the 3.28% average in the five-day moving averages of the overnight and one-month Hong Kong Interbank Offered Rates (HIBORs).

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The base rate served as the interest rate for calculating the discount rate used in repurchasing transactions through the discount window. 

It would depend on either the 50 basis points above the lower end of the prevailing target range for the US federal funds rate or the mean of the five-day moving averages of the overnight and one-month HIBORs, whichever is the higher.