Hong Kong raises base rate by 25 basis points

HONG KONG, Dec. 14 (Xinhua) -- The Hong Kong Monetary Authority (HKMA) on Thursday raised base rate by 25 basis points to 1.75 percent with immediate effect according to a pre-set formula.

The increase follows the 25-basis point upward shift in the target range for the U.S. federal funds rate on Wednesday (local time).

The base rate is currently set at either 50 basis points above the lower end of the prevailing target range for the U.S. federal funds rate, or the average of the five-day moving averages of the overnight and one-month Hong Kong Interbank Offered Rates, whichever is the higher.