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.

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