Hong Kong
Hong Kong Base Rate Again Left at 0.5%
November 4, 2010
The Hong Kong Monetary Authority since 1983 has subordinated any semblance of an independent domestic monetary policy to the priority of fixing the former British colony’s currency at 7.78 per U.S. dollar. To do this, officials have been setting their base rate at a small premium relative to the federal funds rate. Policy meetings in […] More
Hong Kong Monetary Authority Left Base Rate Steady at 0.5%
September 22, 2010
Hong Kong has an exchange rate policy, which for the past 27 years has pegged the Hong Kong dollar to the U.S. currency. In adopting such a policy, officials eschewed any semblance of an independent domestic monetary policy, agreeing to let Federal Reserve short-term interest rate decisions determine Hong Kong’s as well. Further information on […] More
Stocks Rose in Asia But Falling in Europe Despite Strong GDP Results
August 13, 2010
The dollar shows marginal overnight losses of 0.2% against the yen and 0.1% relative to the Aussie and New Zealand dollars as well as sterling. The greenback has risen 0.3% against the Swiss franc and 0.1% versus the euro, on the other hand. Japan’s ruling political party is said to be putting mounting pressure the […] More
No Change in Hong Kong’s 0.5% Base Rate
August 11, 2010
As sure as day follows night, the Hong Kong Monetary Authority matched the Fed’s Tuesday decision not to change its key interest rate. The Base Rate has been at 0.5% since late 2008, yielding a 25-50 basis point premium on the Fed funds target range of 0-0.25% over that span. Hong Kong has not had […] More
Hong Kong Monetary Authority Again Mimes Fed
June 24, 2010
Hong Kong’s key interest rate has been left at 0.5%. Monetary authorities in the former British colony move in lock-step with what the FOMC does. For background on the policy of the HKMA, please read this April 29th article from Currency Thoughts. Copyright Larry Greenberg 2010. All rights reserved. No secondary distribution without express permission. More
Hong Kong Monetary Authority Retains Base Rate Level of 0.5%
April 29, 2010
Monetary policy in Hong is subordinated to enforcing a fixed HKD/USD peg via a currency board system wherein Hong Kong’s monetary base is fully backed by U.S. dollars. The Hong Kong Monetary Authority always takes its cue from actions of the FOMC regarding the federal funds target. When the latter changes, the HKMA generally announces […] More
