Hong Kong's central bank raises base rate by 25 bps after Fed hike

The Hong Kong Monetary Authority (HKMA) raised the base rate charged through its overnight discount window by 25 basis points on Thursday to 2.25 percent after the U.S Federal Reserve raised interest rates by a quarter of a percentage point.

Hong Kong tracks US rate moves because its currency is pegged to the US dollar.

The Hong Kong dollar has repeatedly hit the lower end of its trading band in April and May. The HKMA had mopped up a total HK$70.35 billion of Hong Kong dollars from the foreign exchange market since April 12, nudging up a key lending rate