Hong Kong raises rate following Fed's move, risking housing sell-off

Hong Kong

HONG Kong's de facto central bank followed the US Federal Reserve and boosted interest rates for a third time since December, elevating the risk of a sell-off in the world's priciest housing market.

The Hong Kong Monetary Authority (HKMA) boosted borrowing costs by 25 basis points to 1.5 per cent after the Fed raised its target range by the same amount. The move registered swiftly in markets, with the city's one-month interbank rate, known as Hibor, jumping the most in six months, and a gauge of property stocks in Hong Kong retreating more than one per cent.