© Reuters. FILE PHOTO: Eddie Yue Wai-man, Chief Executive of the Hong Kong Monetary Authority (HKMA) presents for a photo throughout an interview with Reuters in Hong Kong, China November 4,2022 REUTERS/Tyrone Siu/File Photo
HONG KONG (Reuters) -The Hong Kong Monetary Authority (HKMA) on Thursday raised its base rate charged through the overnight discountrate window by 25 basis points to 5.75%, the greatest in 16 years, hours after the U.S. Federal Reserve provided a rate walking of the exactsame margin.
Immediately after the statement the Hong Kong dollar reinforced to 7.7951 per dollar, its greatest level in 8 months.
Hong Kong’s financial policy moves in lock-step with the United States as the city’s currency is pegged to the greenback in a tight variety of 7.75-7.85 per dollar.
The Federal Reserve raised interest rates by a quarter of a portion point and Fed Chair Jerome Powell stated the economy still required to sluggish and the labour market to damage for inflation to “credibly” return to the U.S. main bank’s 2% target.
“Under the connected exchange rate syste