Hong Kong keeps base rate at 4.75%

Hong Kong's central bank has decided to keep its base interest rate at 4.75%. This decision comes as the U.S. Federal Reserve holds off on making major changes to its rates. The current base rate in Hong Kong is the lowest since December 2022, when it was reduced from 5%. Experts believe that Hong Kong banks may soon decrease the prime rate by 0.125 percentage points. Many expect the Fed to cut its rates again by midyear. Fed Chairman Jerome Powell noted that rising tariffs are impacting inflation rates in the U.S., which have delayed progress towards their 2% annual target. Tommy Ong, a finance expert, said that U.S. import tariffs create ongoing pressure that makes it harder for the Fed to ease rates significantly.