Hong Kong central bank keeps base rate unchanged as Fed holds steady
HONG KONG, Aug 1 (Reuters) -The Hong Kong Monetary Authority (HKMA) left the base rate it charges through the overnight discount window at 5.75% on Thursday, after the U.S. Federal Reserve held its rates steady.
The Fed on Wednesday ended its latest two-day policy meeting with a decision to hold its benchmark interest rate steady in the 5.25%-5.50% range that was set a year ago.
Federal Reserve Chair Jerome Powell said, however, interest rates could be cut as soon as September if the U.S. economy follows its expected path.
HKMA said in a statement the city's financial and monetary markets continue to operate in a smooth and orderly manner and the Hong Kong dollar exchange rate remains stable.
"The Hong Kong dollar interbank rates will stay relatively high for the time being, while the future rate path remains uncertain," HKMA said.
Hong Kong's monetary policy typically moves in lock-step with the United States, with the city's currency HKD=D3 pegged to the greenback in a tight range of 7.75-7.85 per dollar.
Reporting by Jessie Pang; Editing by Tom Hogue
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