HKMA announces 50 bps rate cut, USD/HKD pulls back from 13-day low

Anil Panchal FXStreet

Following the footsteps of the Fed and the RBA, the Hong Kong Monetary Authority (HKMA) announced a surprise 50 basis points (bps) cut to its base rate to 1.5%.

Key quotes

Will continue to closely monitor the movements of the foreign exchange and local currency markets with a view to maintaining the stability of Hong Kong dollar through the Linked Exchange Rate System (LERS).

FX implications

With the Hong Kong dollar (HKD) paged tightly to its US counterpart, the HKD/USD registers a swing from its multi-day low of 7.7343, registered the previous day, while marking 7.7712 as a quote by the press time of Wednesday’s Asian session.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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