The Monetary Authority in Hong Kong on Thursday lowered the base rate from 2.5 percent to 2.25 percent, a day after the U.S. Federal Reserves' 25-basis point cut.
Hong Kong's base rate is the interest rate forming the foundation upon which the discount rates for repurchase transactions through the discount window are computed.
According to Hong Kong's Linked Exchange Rate System, the base rate is currently set at either 50 basis points above the lower end of the prevailing target range for the U.S. federal funds rate or the average of the five-day moving averages of the overnight and one-month Hong Kong Interbank Offered Rates, whichever is the higher.
