Hong Kong's economy improving, rate cut positive to the city, Eddie Yue says

Hong Kong’s economy is gradually improving this year and an interest rate cut could have a positive effect on the city, said the Hong Kong Monetary Authority chief executive Eddie Yue Wai-man. 

Yue said the economy should continue to be supported by broader fundamentals, while housing prices remain tied to supply, demand, and overall economic conditions.

A cut in interest rate could help ease the debt for individuals and businesses, bringing favorable effects to the economy and property market, he said, while stressing that both are influenced by many other factors.

The de facto central bank lowered the base interest rate by 25 basis points in lockstep to the US Federal Reserve. The market is eying whether local banks would follow suit and cut their prime rates later on Thursday.