Hong Kong lowers base rate by 25 basis points

HONG KONG -- The Hong Kong Monetary Authority on Thursday lowered its base rate by 25 basis points to 2 percent with immediate effect following the US federal funds rate cut overnight.

The cut was announced after US Federal Reserve decided Wednesday to trim federal funds rate by 25 basis points, the third rate reduction this year.

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 US 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.