--- title: "HKMA raises rate for first time in three years" type: "News" locale: "en" url: "https://longbridge.com/en/news/299275822.md" description: "The Hong Kong Monetary Authority (HKMA) raised its base interest rate by 25 basis points to 4.25% on Sep 17, aligning with the US Federal Reserve's hike. This marks the first HKMA rate increase since July 2023. Despite this, major lenders HSBC, Standard Chartered, and Bank of China (Hong Kong) kept their best lending rates unchanged. The HKMA warned that the widening USD-HKD rate differential could weaken the Hong Kong dollar." datetime: "2026-09-17T06:17:27.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/299275822.md) - [en](https://longbridge.com/en/news/299275822.md) - [zh-HK](https://longbridge.com/zh-HK/news/299275822.md) generator: "portal-rs" --- # HKMA raises rate for first time in three years \[HONG KONG\] The Hong Kong Monetary Authority (HKMA) raised its base interest rate charged via the overnight discount window by 25 basis points to 4.25 per cent on Thursday (Sep 17), tracking a hike by the US Federal Reserve. Hong Kong’s monetary policy moves in lock-step with the US as the city’s currency is pegged to the US dollar in a tight range of 7.75 to 7.85 per dollar. It was the HKMA’s first rate hike since July 2023. However, HSBC and Standard Chartered Bank (StanChart) said that they would keep their best lending rates in Hong Kong unchanged, at 5 per cent and 5.25 per cent, respectively. Bank of China (Hong Kong) said that its Hong Kong dollar prime rate remain unchanged at 5 per cent. All three lenders kept their Hong Kong dollar savings deposit rates unchanged. The banks did not provide reasons for their moves. Hong Kong’s de facto central bank said that the Fed’s decision to raise interest rates was in line with market expectations and reflected the committee’s concerns about the outlook for inflation. “The Hong Kong dollar and US dollar interest rate differential will widen, and carry trade activities may cause the Hong Kong dollar to ease toward the weak side of the band,” HKMA chief executive Eddie Yue told reporters. The Federal Reserve raised interest rates on Wednesday for the first time in three years, and flagged more hikes in the coming months. US interest rate adjustments are subject to considerable uncertainty and may influence the interest rate environment in Hong Kong, and the public should carefully manage interest rate risks when making financial decisions, Yue added. Hong Kong’s monetary and financial markets have continued to operate in an orderly manner, and banks would take into consideration factors including funding supply and demand, the level of interest rates, and their own funding cost structures when making decisions on interest rates, the HKMA said. REUTERS ### Related Stocks - [HSBC.US](https://longbridge.com/en/quote/HSBC.US.md) - [HSBH.US](https://longbridge.com/en/quote/HSBH.US.md) - [00005.HK](https://longbridge.com/en/quote/00005.HK.md) - [02388.HK](https://longbridge.com/en/quote/02388.HK.md) - [02888.HK](https://longbridge.com/en/quote/02888.HK.md) - [STAN.UK](https://longbridge.com/en/quote/STAN.UK.md) - [HSBA.UK](https://longbridge.com/en/quote/HSBA.UK.md) - [DTIW.SG](https://longbridge.com/en/quote/DTIW.SG.md) - [BACHY.US](https://longbridge.com/en/quote/BACHY.US.md) - [03988.HK](https://longbridge.com/en/quote/03988.HK.md) - [601988.CN](https://longbridge.com/en/quote/601988.CN.md) ## Related News & Research - [Standard Chartered Hong Kong Keeps HKD Prime Rate Unchanged at 5.25%](https://longbridge.com/en/news/299268166.md) - [HSBC Maintains Best Lending Rate Unchanged at 5%](https://longbridge.com/en/news/299267369.md) - [HKMA Eddie Yue: Uncertainty Remains Over US Rate Path; HK Interest Rate Environment to Be Affected](https://longbridge.com/en/news/299254860.md) - [The Fed was bullied into hiking rates. Now it hopes it didn’t royally screw up](https://longbridge.com/en/news/299266313.md) - [California State Teachers Retirement System Buys 3,322,573 Shares of Park National Co. $PRK](https://longbridge.com/en/news/299010513.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**