The Hong Kong Monetary Authority announced today that the basic interest rate is set at 4.25% according to the default formula, with immediate effect. According to our understanding, the basic interest rate in Hong Kong is the base interest rate used to calculate the discount rate applied when making repurchase transactions through the discount window. Currently, the basic interest rate is set at the lower limit of the current US federal funds rate target range plus 50 basis points, or the average of the five-day moving average of overnight and one-month Hong Kong interbank interest rates, whichever is higher. In response to the US raising the federal funds rate target range of 25 basis points on September 16, the lower limit of the current US federal funds rate target range plus 50 basis points is 4.25%, while the average value of the five-day moving average of overnight and one-month Hong Kong interbank interest rates is 2.50%, so according to the preset formula, the basic interest rate is set at 4.25%.

The Hong Kong Monetary Authority announced today that the basic interest rate is set at 4.25% according to the default formula, with immediate effect. According to our understanding, the basic interest rate in Hong Kong is the base interest rate used to calculate the discount rate applied when making repurchase transactions through the discount window. Currently, the basic interest rate is set at the lower limit of the current US federal funds rate target range plus 50 basis points, or the average of the five-day moving average of overnight and one-month Hong Kong interbank interest rates, whichever is higher. In response to the US raising the federal funds rate target range of 25 basis points on September 16, the lower limit of the current US federal funds rate target range plus 50 basis points is 4.25%, while the average value of the five-day moving average of overnight and one-month Hong Kong interbank interest rates is 2.50%, so according to the preset formula, the basic interest rate is set at 4.25%.