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HK's central bank raises base rate by 25 basis points to 0.75%
[HONG KONG] Hong Kong's central bank on Thursday raised the base rate it charges through its overnight discount window by 25 basis points to 0.75 per cent, a move that is expected to pressure property prices in one of the world's most expensive housing markets.
The rate hike followed the US Federal Reserve's decision to raise the benchmark federal funds rate by a quarter of a per centage point to between 0.25 per cent and 0.50 per cent on Wednesday, its first move in nearly a decade.
While Hong Kong has successfully weathered previous HK's c.bank raises base rate by 25 basis points to 0.75 pct rate hikes, the latest increase comes at an increasingly uncertain time for the city as it grapples with the impact of a slowdown in China and a struggling retail and tourism sector.
As part of a three-decade long system, Hong Kong tracks US interest rate moves as its currency is part of an increasingly rare group to be pegged to the greenback.