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 this policy can be read by clicking this earlier article from Currency Thoughts.

Copyright Larry Greenberg 2010.  All rights reserved.  No secondary distribution without express permission.



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