HKMA cuts base rate by a quarter point

Hong Kong Monetary Authority (HKMA) has lowered the base rate by 0.25 percentage points to 4.75 percent with immediate effect, following the U.S. Federal Reserve's decision to decrease the benchmark rate by 25 basis points on Wednesday (U.S. Time).

HKMA said after the 25-basis point downward adjustment in the target range for the US federal funds rate, 50 basis points above the lower end of the prevailing target range for the US federal funds rate is 4.75 percent, while the average of the five-day moving averages of the overnight and one-month HIBORs is 4.20 percent.

The Base Rate is therefore set at 4.75 percent according to the pre-set formula.

The Base Rate is the interest rate forming the foundation upon which the Discount Rates for repurchase transactions through the Discount Window are computed.