Hong Kong Monetary Policy Unchanged
September 24, 2009
The Hong Kong Monetary Authority announced no change in its 0.5% base rate. Domestic monetary policy is subordinated to the pegging the Hong Kong dollar at 7.8 per U.S. dollar, so interest rates move in lock-step with the Fed funds rate. That parity rate was set initially in October 1983; allowed fluctuations around such were widened slightly in 2005. The FOMC’s announced unchanged 0.25% funds rate yesterday determined what Hong Kong monetary officials would need to do.
Copyright Larry Greenberg 2009. All rights reserved. No secondary distribution without express permission.
ShareThis