US interest rate increase discount window basic rate Hong Kong dollar will event

Following the Fed's rate hike, the Hong Kong Monetary Authority (HKMA) also announced on Thursday that it will raise its benchmark interest rate on discount windows by 25 basis points to 1.75%. Monetary Authority Chief Executive Edward C. Chan said the widening interest spread between Hong Kong and the United States and the tax reform in the United States could lead to the flow of funds, eventually weakening the Hong Kong dollar to a weaker side exchange guarantee of 7.85.

The Federal Reserve Board (FED / Fed) raised interest rates by 25 basis points on Wednesday as expected for the third time this year and expects to raise interest rates three times a year in 2018 and 2019 before long-term interest rates reach 2.8%.

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When interviewed by the media, Mr Chan said the widening interest gap between Hong Kong and the United States eventually led to the flow of funds from the Hong Kong dollar to the U.S. dollar. However, this was not the only factor that led to an increase in the Hong Kong dollar interest rate. Taking the recent HIBOR as an example, For example, the listing of new shares will tighten the capital and lead to higher interest rates. In addition, the tax reform adopted by the United States may also affect the interest rate in Hong Kong.