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.




Calendar GMT Reference Actual Previous Consensus TEForecast
2024-09-19 01:00 AM
Interest Rate Decision
5.25% 5.75%
2024-11-08 01:00 AM
Interest Rate Decision
5% 5.25%
2024-12-19 01:00 AM
Interest Rate Decision
4.75% 5%


Related Last Previous Unit Reference
Banks Balance Sheet 28060410.00 27814826.00 HKD Million Nov 2024
Foreign Exchange Reserves 421400.00 425100.00 USD Million Dec 2024
Interest Rate 4.75 5.00 percent Dec 2024
Loans to Private Sector 9867804.00 9974619.66 HKD Million Oct 2024
Money Supply M0 581520.00 585234.00 HKD Million Oct 2024
Money Supply M1 2808256.00 2824711.00 HKD Million Oct 2024
Money Supply M2 18240045.00 18209671.00 HKD Million Oct 2024
Money Supply M3 18282632.00 18251104.00 HKD Million Oct 2024

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.
Actual Previous Highest Lowest Dates Unit Frequency
4.75 5.00 8.00 0.50 1998 - 2024 percent Daily


News Stream
Hong Kong Lowers Base Rate By 25Bps After Fed Action
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.
2024-12-19
Hong Kong Slashes Base Rate by 25Bps After FOMC Move
The Hong Kong Monetary Authority (HKMA) reduced its base rate by 25bps to 5.0% on November 8th, hours after the US Federal Reserve slashed interest rates by the same margin following a 50bps reduction in September. Monetary policy in the Asian finance hub moved in line with the US as the local currency is pegged to the greenback. This decision brought borrowing costs in the city to their lowest level since February 2023, providing more relief for consumers and businesses who have faced high interest rates for years. That has been a major drag on Hong Kong's housing market and economy. The city's GDP grew by 1.8% yoy in Q3 of 2024, the slowest expansion in five quarters, due to a further drop in private consumption and a slowdown in exports. The government had projected the economy to expand by 2.5 to 3.5% this year. On the monetary side, foreign exchange reserves in Hong Kong stood at HKD 421.4 billion in October, marking the lowest level in three months.
2024-11-08
Hong Kong Lowers Interest Rates by 50Bps After Fed Action
The Hong Kong Monetary Authority (HKMA) slashed its base rate by 50bps to 5.25% on September 19th, hours after the US Federal Reserve initiated its policy easing with a 50bps rate cut, which was the first reduction since March 2020. Monetary policy in the Asian finance hub moved in line with the US as the local currency is pegged to the greenback. Thursday’s decision brought borrowing costs in the city to their lowest level since April 2023, offering relief for consumers and businesses who have dealt with high interest rates for years. However, Deputy Chief Executive of the HKMA, Howard Lee, expects that interest rates will remain elevated for a foreseeable period, reminding the public to carefully consider and manage interest rate risks when making property and borrowing decisions.
2024-09-19