According to PANews, the Hong Kong Monetary Authority (HKMA) has reduced its benchmark interest rate by 25 basis points, bringing it down to 4.75%. This decision follows the U.S. Federal Reserve's announcement earlier in the day to cut its interest rate by the same margin.
The move by the HKMA aligns with its policy of maintaining a stable monetary environment in Hong Kong, which is closely tied to the U.S. dollar due to the currency peg. The adjustment in the benchmark rate is expected to influence borrowing costs and economic activity in the region, reflecting the HKMA's response to global economic conditions and monetary policy trends set by the Federal Reserve.
This rate cut is part of a broader strategy to support economic stability and growth, as central banks worldwide adjust their policies in response to changing economic indicators. The HKMA's decision underscores the interconnectedness of global financial systems and the impact of major economies' monetary policies on smaller, open economies like Hong Kong.