Adjustment of Base Rate

The Hong Kong Monetary Authority (HKMA) has set the Base Rate at 4.75% effective immediately, following a pre-established formula. This rate, which determines the Discount Rates for repurchase transactions through the Discount Window, is based on either 50 basis points above the lower end of the US federal funds target range or the average of the five-day moving averages of Hong Kong Interbank Offered Rates (HIBORs), whichever is higher. Due to a recent 25-basis point cut in the US federal funds rate, the Base Rate is now 4.75%, as it is higher than the average HIBOR rate of 4.20%.

Resources: https://www.hkma.gov.hk/eng/news-and-media/press-releases/2024/12/20241219-3/