The United States announced an interest rate hike of 0.5%. According to Bloomberg data, the HKMA immediately raised the base interest rate by 50 basis points to 1.25% according to the preset formula, with immediate effect.
The Hong Kong exchange rate is currently at 7.8484, still on the weaker side of the exchange guarantee, the weakest in the past three years.
According to the mechanism design of the HKMA, if banks need liquidity, they can borrow overnight Hong Kong dollar funds from the HKMA through the discount window. The average level of the 5-day moving average of the monthly HIBOR, whichever is higher.
The Federal Reserve announced in the early morning of Thursday (5th) Hong Kong time, and then raised the target range of the policy rate federal funds rate from 0.25% to 0.50% to 0.75% to 1.00%.
In addition, it also announced that the table will be reduced at a rate of US$47.5 billion per month starting in June, and the upper limit will be doubled three months later.
