Hong Kong central bank keeps key rate steady, tracking Fed

HONG KONG (Reuters) -The Hong Kong Monetary Authority (HKMA) kept the base rate it charges via its overnight discount window unchanged at 4.75% on Thursday, tracking a move by the U.S. Federal Reserve to keep rates steady.

The U.S. central bank held interest rates steady on Wednesday, and Federal Reserve Chair Jerome Powell's comments after the decision dented confidence that borrowing costs would begin to fall in September.

HKMA said Hong Kong's monetary and financial markets have continued to operate in an orderly manner.

The territory's de facto central bank stepped into the foreign exchange market as the Hong Kong dollar hit the weak end of its trading band against the U.S. currency since the end of June.

HKMA said it will buy Hong Kong dollars and sell U.S. dollars if the local currency faces weakness again in the future.

Hong Kong's monetary policy moves in lock-step with the United States as the city's currency is pegged to the dollar in a tight range of 7.75-7.85 per dollar.

HSBC Holdings on Thursday said its best lending rate in Hong Kong remains unchanged at 5.25%. Bank of China (Hong Kong) and Hang Seng Bank also said they would keep their Hong Kong dollar prime rate unchanged at 5.25%.

(Reporting by Hong Kong newsroom; Editing by Jane Merriman)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• HSBC Downgrades IBM (IBM) to Reduce, 'Stretched Valuation'
• AI startup Reflection signs over $1 billion computing deal with Nebius
• WHO says it has less than half funding needed to fight Ebola