The Hong Kong Monetary Authority has raised its base rate to 2.25 percent from 2 percent Thursday, following a 25 basis point move by the US Federal Reserve.
Hong Kong is one of the economies in Asia which is most vulnerable to the Fed’s tightening because of the potential impact on property prices, said Tai Hui, chief market strategist for Asia Pacific at JPMorgan Asset Management.
“Major banks will raise the prime rate first -- as soon as this week -- and other smaller lenders will follow their lead to do the same,” said Ken Cheung, a senior currency strategist at Mizuho Bank in Hong Kong. “Direct impacts on the housing market should be limited.”
Read much more on this story from Bloomberg Hong Kong News