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Hong Kong c.bank raises interest rates after Fed move; shares watched

Reuters  |  HONG KONG 

By Donny Kwok

(Reuters) - The Monetary Authority on Thursday raised the base rate charged through its overnight discount window by 25 basis points to 1.25 percent.

The move from Hong Kong's de facto central followed the U.S. Federal Reserve's decision to raise interest on Wednesday for the second time in three months, a move spurred by steady economic growth, strong job gains and confidence that inflation is rising to the central bank's target.

tracks U.S. rate moves as its currency is pegged to the U.S. dollar.

of banking <.HSNF> and property <.HSNP> companies will be in the spotlight in as the increase could raise concerns on the health of their balance sheets.

Including reinvested dividends, the broader stock market <.HSI> has outperformed a sub-index of property <.HSNP> and finance <.HSNF> companies since the last U.S. rate increase in December.

The city's economy has become more dependent on the mainland at a time when Beijing authorities say meeting a target of 6.5 percent growth this year won't be easy.

More than three fourths of inbound tourists are from the mainland, a big source of revenue for local companies, and more than half of its trade is with China.

The central sets its base rate through a formula that is 50 basis points above the prevailing U.S. Funds Target or the average of the five-day moving averages of the overnight and one-month HIBORs (Inter-Offered Rate).

(Writing by Saikat Chatterjee; Editing by Richard Borsuk)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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Hong Kong c.bank raises interest rates after Fed move; shares watched

HONG KONG (Reuters) - The Hong Kong Monetary Authority on Thursday raised the base rate charged through its overnight discount window by 25 basis points to 1.25 percent.

By Donny Kwok

(Reuters) - The Monetary Authority on Thursday raised the base rate charged through its overnight discount window by 25 basis points to 1.25 percent.

The move from Hong Kong's de facto central followed the U.S. Federal Reserve's decision to raise interest on Wednesday for the second time in three months, a move spurred by steady economic growth, strong job gains and confidence that inflation is rising to the central bank's target.

tracks U.S. rate moves as its currency is pegged to the U.S. dollar.

of banking <.HSNF> and property <.HSNP> companies will be in the spotlight in as the increase could raise concerns on the health of their balance sheets.

Including reinvested dividends, the broader stock market <.HSI> has outperformed a sub-index of property <.HSNP> and finance <.HSNF> companies since the last U.S. rate increase in December.

The city's economy has become more dependent on the mainland at a time when Beijing authorities say meeting a target of 6.5 percent growth this year won't be easy.

More than three fourths of inbound tourists are from the mainland, a big source of revenue for local companies, and more than half of its trade is with China.

The central sets its base rate through a formula that is 50 basis points above the prevailing U.S. Funds Target or the average of the five-day moving averages of the overnight and one-month HIBORs (Inter-Offered Rate).

(Writing by Saikat Chatterjee; Editing by Richard Borsuk)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22

Hong Kong c.bank raises interest rates after Fed move; shares watched

By Donny Kwok

(Reuters) - The Monetary Authority on Thursday raised the base rate charged through its overnight discount window by 25 basis points to 1.25 percent.

The move from Hong Kong's de facto central followed the U.S. Federal Reserve's decision to raise interest on Wednesday for the second time in three months, a move spurred by steady economic growth, strong job gains and confidence that inflation is rising to the central bank's target.

tracks U.S. rate moves as its currency is pegged to the U.S. dollar.

of banking <.HSNF> and property <.HSNP> companies will be in the spotlight in as the increase could raise concerns on the health of their balance sheets.

Including reinvested dividends, the broader stock market <.HSI> has outperformed a sub-index of property <.HSNP> and finance <.HSNF> companies since the last U.S. rate increase in December.

The city's economy has become more dependent on the mainland at a time when Beijing authorities say meeting a target of 6.5 percent growth this year won't be easy.

More than three fourths of inbound tourists are from the mainland, a big source of revenue for local companies, and more than half of its trade is with China.

The central sets its base rate through a formula that is 50 basis points above the prevailing U.S. Funds Target or the average of the five-day moving averages of the overnight and one-month HIBORs (Inter-Offered Rate).

(Writing by Saikat Chatterjee; Editing by Richard Borsuk)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22