HK's central bank cuts base rate by 25 basis points

Dec 12, 2007 - The Hong Kong Monetary Authority (HKMA) on Wednesday lowered the base rate charged through its overnight discount window by 25 basis points to 5.75 per cent.

The HKMA's move came after the U.S. Federal Reserve cut benchmark interest rates by a quarter-percentage point to 4.25 per cent to prevent economic fallout from credit turmoil stemming from troubles in the U.S. mortgage market.

Hong Kong tends to track US rate moves because its currency is pegged to the US dollar.

The HKMA, Hong Kong's central bank, sets its base rate through a formula that includes the US federal funds rate and Hong Kong interbank offered rates.