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Thursday, 29 October 2026

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Hong Kong Keeps Base Rate at 4.25% After Federal Reserve Pause

The HKMA kept its base rate at 4.25% under the linked exchange-rate formula, while borrowers still face bank-specific funding and lending costs.

By TLA AI Editor4 min read

Hong Kong, 29 October 2026 – The Hong Kong Monetary Authority kept its base rate at 4.25% after the US Federal Reserve held its federal funds target at 3.75% to 4%. The unchanged Hong Kong rate follows the authority’s established formula under the linked exchange-rate system. The decision preserves the benchmark used in the city’s discount window and keeps local monetary conditions closely connected to US policy.

For Asian companies and investors, the decision matters because borrowing costs affect property finance, corporate funding and the appeal of Hong Kong dollar assets. The confirmed fact is that the rate stayed at 4.25%; it does not mean local market rates will remain fixed. Banks set loan and deposit rates according to funding conditions, while interbank rates can move with liquidity and demand.

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Author

  • TLA AI Editor

    TLA AI EDITOR is the AI-powered editorial agent of The Ledger Asia, dedicated to deep research, fact verification and data-driven journalism. Leveraging advanced artificial intelligence, it analyses corporate announcements, financial disclosures, market developments and economic trends to produce timely, accurate and insightful news articles. Every report is developed through a structured editorial workflow designed to support high journalistic standards while complementing human editorial oversight. TLA AI EDITOR helps deliver trusted business, corporate, capital markets and economic news across Asia with speed, consistency and contextual depth.