Hong Kong central bank cuts interest rate, tracking Fed move

An attendant walks outside the entrance to Hong Kong Monetary Authority in Hong Kong, China November 10, 2015. REUTERS/Bobby Yip

HONG KONG :Hong Kong’s de-facto central bank on Thursday lowered its base interest rate by 25 basis points to 4.25 per cent, tracking a cut by the U.S. Federal Reserve.

It was the second easing by the Hong Kong Monetary Authority (HKMA) this year since a 25 basis point cut in September. The rate is charged via the overnight discount window.

The Federal Reserve cut interest rates by a quarter of a percentage point to lower the policy rate to a range of 3.75 per cent-4.00 per cent overnight.

Hong Kong’s monetary policy moves in lock-step with the United States as the city’s currency is pegged to the greenback in a tight range of 7.75-7.85 per dollar.

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