Hong Kong Monetary Authority raises base rate by 25 basis points

HONG KONG, June 14 (Xinhua) -- The Hong Kong Monetary Authority (HKMA) on Thursday raised the base rate by 25 basis points to 2.25 percent, following the 25-basis point upward shift in the target range for the U.S. federal funds rate.

This is the second time for the HKMA to take such a move this year.

The base rate is the interest rate forming the foundation upon which the discount rates for repurchase transactions through the discount window are computed.

The base rate is currently set at either 50 basis points above the lower end of the prevailing target range for the U.S. federal funds rate or the average of the five-day moving averages of the overnight and one-month Hong Kong interbank offered rates, whichever is the higher.