Today (December 15th), the Hong Kong Monetary Authority (HKMA) announced a 50 basis point increase in the benchmark interest rate to 4.75%.

The current base rate is set at the lower limit of the current US federal funds rate target range plus 50 basis points, or the average of the 5-day moving average of overnight and 1-month Hong Kong interbank offered rates, whichever is higher.

In response to the US raising the target range of the federal funds rate by 50 basis points on December 14th (US time), the lower limit of the current US federal funds rate target range plus 50 basis points is 4.75%, while the average 5-day moving average of overnight and 1-month Hong Kong interbank offered rates is 3.57%. Therefore, according to the preset formula, the base rate is set at 4.75%.

According to previous news, on November 3rd, the Hong Kong Monetary Authority announced that the basic interest rate would be raised to 4.25% based on a preset formula, with immediate effect.