The US job market is beginning to cool.  Job opportunities recorded the largest drop in nearly two and a half years

Hong Kong central bank raises interest rate after Fed hike, HSBC follows

HONG KONG (Reuters) – Hong Kong’s monetary authority on Thursday raised its base rate charged through the overnight discount window by 75 basis points to 3.5%, hours after the US Federal Reserve raised its own interest rate. edge.

HSBC said it would raise its best lending rate in Hong Kong by 12.5 basis points to 5.125% from 5.0% as of September 23, its first rate hike since September 2018.

“Expectations for a possible increase in the benchmark interest rate in Hong Kong have been ripe and today’s announcement marks the beginning of an upward cycle,” Luan Lim, chief executive of HSBC in Hong Kong, said in a statement.

Hong Kong’s monetary policy is moving close to the US as the city’s currency is pegged to the dollar in a narrow range of 7.75-7.85 per dollar.

The Federal Reserve introduced its third consecutive rate increase of 75 basis points on Wednesday and indicated that borrowing costs will continue to rise, underscoring the US central bank’s determination not to be complacent in its battle to contain inflation.

HKMA raised its base price to the highest level since October 2008. But Hong Kong’s chief financial officer said on Thursday that he did not see a significant risk to the city’s property market and no need to adjust property control procedures.

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