🇭🇰🇺🇸 Hong Kong follows Fed and jacks up interest rates as U.S-Iran war supercharges inflation
The HKMA lifted its base rate by 25 basis points to 4.25%, tracking the Fed's own hike a day earlier.
The root catalyst sits thousands of miles away. The war between the U.S and Iran has been raging since February, pushing oil prices into record territory and re-igniting global inflation.
Fed Chair Kevin Warsh declared that inflation has been "too high for too long" despite demands from Trump to lower rates.
So a conflict in the Gulf turns into higher borrowing costs in Hong Kong, but the timing couldn't be worse. HK GDP growth slowed to 4.3% in Q2, and the local property market is barely finding its footing after years of decline.
Geopolitics in the Middle East just sent the bill straight to Hong Kong homeowners.
Source: Reuters / Writer: Bri
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