The Hong Kong Monetary Authority (HKMA) slashed its base rate by 25bps to 4.75% on December 19th, after the US Federal Reserve trimmed interest rates by the same margin but projected fewer reductions next year. Monetary policy in the Asian finance hub moved in line with the US as the local currency is pegged to the greenback. It was the third rate cut this year, bringing borrowing costs in the city to their lowest level since January 2023. For years, high interest rates have burdened Hong Kong's economy. Hong Kong's GDP grew by 1.8% yoy in Q3 of 2024, the slowest pace in five quarters, weighed by a further decline in private consumption and moderation in exports. The government has estimated the economy to expand by 2.5% this year. Authorities recently said that a series of initiatives from China since late September, along with measures from the city's government, may effectively boosting spending in the domestic market. source: Hong Kong Monetary Authority
The benchmark interest rate in Hong Kong was last recorded at 4.75 percent. Interest Rate in Hong Kong averaged 3.25 percent from 1998 until 2024, reaching an all time high of 8.00 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 January of 2025.
The benchmark interest rate in Hong Kong was last recorded at 4.75 percent. Interest Rate in Hong Kong is expected to be 4.75 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Hong Kong Interest Rate is projected to trend around 4.25 percent in 2025 and 3.75 percent in 2026, according to our econometric models.