Hong Kong Monetary Authority matches US Fed interest rate hike

The Hong Kong Monetary Authority has raised the territory’s base interest rate for the first time in nearly a decade in response to the US Federal Reserve’s decision to raise rates, South China Morning Post reported. The authority increased the rate by 25 basis points to 0.75% Thursday morning to maintain a longstanding peg to the US dollar, though commercial banks can decide for themselves whether to immediately increase the interest rate for deposits or loans, unlike in mainland China. The last hike in Hong Kong’s base rate took place on June 30, 2006 from 6.5% to 6.75%.