HONG KONG JUST RAISED RATES INTO A YEAR OF STRONG ECONOMIC GROWTH

What happened: The Hong Kong Monetary Authority raised its base rate to 4.25 percent on 17 September, its first increase in more than three years, a day after the Federal Reserve lifted its target range. Key numbers: Base rate 4.25 percent. Fed target range 3-3/4 to 4 percent. Hong Kong real GDP grew 4.3 percent year on year in Q2. Why it matters: Under the Linked Exchange Rate System Hong Kong imports US policy, so tightening arrives even as its own economy accelerates. HKMA chief executive Eddie Yue said a wider rate gap could soften the local dollar and encourage carry trades.

Hong Kong raised rates amid strong economic growth.

Hong Kong raised rates amid strong economic growth. — impact context not separately stored; see What changed.