Adjustment of the Base Rate
The Hong Kong Monetary Authority (HKMA) announced today (23 March)
that the Base Rate has been set at 5. 25% with immediate effect
according to a pre-set formula.
The Base Rate is the interest
rate forming the foundation upon which the Discount Rates for
repurchase transactions through the Discount Window are computed. The
Base Rate is currently set at either 50 basis points above the lower
end of the prevailing target range for the US federal funds rate or
the average of the five-day moving averages of the overnight and one-
month Hong Kong Interbank Offered Rates (HIBORs), whichever is the
higher.
Following the 25-basis point upward adjustment in the
target range for the US federal funds rate on 22 March (US time), 50
basis points above the lower end of the prevailing target range for
the US federal funds rate is 5. 25%, while the average of the five-day
moving averages of the overnight and one-month HIBORs is 2. 61%. The
Base Rate is therefore set at 5. 25% according to the pre-set formula.
Hong Kong Monetary Authority 23 March 2023