FX.co ★ Hong Kong Keeps Base Rate at 4.75% After Fed Move

The Hong Kong Monetary Authority (HKMA) decided to maintain its base rate at 4.75% as of June 19. This decision aligns with the U.S. Federal Reserve's choice to keep its benchmark rate steady at 4.25%–4.50% for a fourth consecutive meeting, despite external pressures from President Trump to lower rates. Both central banks are exercising caution, closely observing the potential inflationary impacts of the tariffs imposed by Washington as they approach the expiration of the truce on July 9. The HKMA's policy approach continues to parallel that of the Federal Reserve due to the Hong Kong dollar's fixed exchange rate with the U.S. dollar.