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HONG KONG - THE Hong Kong Monetary Authority on Wednesday lowered the base rate charged through its overnight discount window by 100 basis points to 0.50 per cent.
The central bank's move followed the US Federal Reserve decision to cut interest rates to a record low range of 0-0.25 per cent, a move aimed at easing credit and supporting the US economy, which analysts say risks falling into a prolonged recession.
Hong Kong tracks US rate moves because its currency is pegged to the US dollar. Local banks, however, have some leeway to lag US rate moves and may not follow the US rate cut, analysts said.
The monetary authority sets its base rate through a formula that includes the US federal funds rate. -- THOMSON REUTERS
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