The Hong Kong Monetary Authority lowered its base rate by 64 basis points to 0.86 percent on March 16th 2020, after the Fed made an emergency 100bps rate cut in the fed funds rate, the second unexpected rate drop in near two weeks, aiming to protect the economy from a potential recession after the COVID-19 pandemic shows no sign of slowing. The central bank also slashed with immediate effect the countercyclical capital buffer it required financial institutions to hold from 2% to 1% of their risk-weighted assets. The Countercyclical Capital Buffer is part of the Basel III regulatory capital framework and aims to build up additional capital during periods of excessive credit growth.

Interest Rate in Hong Kong averaged 3.32 percent from 1998 until 2020, reaching an all time high of 8 percent in May of 2000 and a record low of 0.50 percent in December of 2008. This page provides the latest reported value for - Hong Kong Interest Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. Hong Kong Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on March of 2020. source: Hong Kong Monetary Authority

Interest Rate in Hong Kong is expected to be 0.86 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Hong Kong to stand at 0.50 in 12 months time. In the long-term, the Hong Kong Interest Rate is projected to trend around 0.75 percent in 2021 and 1.25 percent in 2022, according to our econometric models.

Ok
Trading Economics members can view, download and compare data from nearly 200 countries, including more than 20 million economic indicators, exchange rates, government bond yields, stock indexes and commodity prices.

The Trading Economics Application Programming Interface (API) provides direct access to our data. It allows API clients to download millions of rows of historical data, to query our real-time economic calendar, subscribe to updates and receive quotes for currencies, commodities, stocks and bonds.

Please Paste this Code in your Website
width
height
Hong Kong Interest Rate

Actual Previous Highest Lowest Dates Unit Frequency
0.86 1.50 8.00 0.50 1998 - 2020 percent Daily


Calendar GMT Actual Previous Consensus TEForecast
2019-09-19 12:30 AM 2.25% 2.5% 2.25%
2019-10-31 12:30 AM 2.0% 2.25% 2%
2020-03-03 11:30 PM 1.5% 2%
2020-03-15 11:45 PM 0.86% 1.5%


News Stream
Hong Kong Cuts Rates After Fed Move
The Hong Kong Monetary Authority lowered its base rate by 64 basis points to 0.86 percent on March 16th 2020, after the Fed made an emergency 100bps rate cut in the fed funds rate, the second unexpected rate drop in near two weeks, aiming to protect the economy from a potential recession after the COVID-19 pandemic shows no sign of slowing. The central bank also slashed with immediate effect the countercyclical capital buffer it required financial institutions to hold from 2% to 1% of their risk-weighted assets. The Countercyclical Capital Buffer is part of the Basel III regulatory capital framework and aims to build up additional capital during periods of excessive credit growth.
2020-03-16
Hong Kong Cuts Interest Rate by 50 Bps to 1.5%
The Hong Kong Monetary Authority/HKMA lowered its base rate by 50 basis points to 1.5 percent on March 4th, 2020, following a similar move by the US Federal Reserve as Hong Kong's currency is pegged to the US dollar. The central bank sets its base rate at either 50 basis points above the lower end of the prevailing target range for the US federal funds rate or the average of the five-day moving averages of the overnight and one-month Hong Kong Interbank Offered Rates (HIBORs), whichever is the higher. The monetary authority mentioned that there were many uncertainties in future changes of the COVID-19 epidemic and there would still be very large fluctuations in the financial market. The HKMA also said it will continue closely monitoring the movement of the foreign exchange and local currency market, with a view to maintain the stability of Hong Kong dollar through the link exchange system.
2020-03-04
Hong Kong Cuts Base rate by 25 Bps to 2%
The Hong Kong Monetary Authority/HKMA lowered its base rate by 25 basis points to 2.0 percent on October 31th, 2019. It was the third rate cut this year, tracking a similar move by the US Federal Reserve as Hong Kong's currency is pegged to the US dollar. The central bank sets its base rate at either 50 basis points above the lower end of the prevailing target range for the US federal funds rate or the average of the five-day moving averages of the overnight and one-month Hong Kong Interbank Offered Rates (HIBORs), whichever is the higher. According to the HKMA chief executive Eddie Yu, there was no obvious outflow of capital from the city's banking system and the local currency was largely stable, adding that while the foreign exchange and money markets were operating smoothly, the public must prudently manage financial risk.
2019-10-31
Hong Kong Cuts Interest Rate by 25 Bps
The Hong Kong Monetary Authority/HKMA lowered its base rate by 25 basis points to 2.25 percent on September 19th, 2019. It was the second rate cut this year, tracking a similar move by the US Federal Reserve as Hong Kong's currency is pegged to the US dollar. The central bank sets its base rate at either 50 basis points above the lower end of the prevailing target range for the US federal funds rate or the average of the five-day moving averages of the overnight and one-month Hong Kong Interbank Offered Rates (HIBORs), whichever is the higher. Looking ahead, "HKD interest rates should track USD interest rates, but short-term interest rate movements are affected by changes in supply and demand of HKD funding. Given the uncertainties about interest rates outlook in the US, the public should continue to manage risks prudently" the HKMA chief executive Norman Chan said.
2019-09-19

Hong Kong Interest Rate
In Hong Kong the interest rates decisions are taken by the Hong Kong Monetary Authority (HKMA). The main interest rate is Base rate, adjusted with accordance to the Hong Kong dollar’s demand or supply.