The Hong Kong Monetary Authority (HKMA) has reduced its benchmark interest rate by 25 basis points, aligning with the recent interest rate cut by the Federal Reserve. This move is a part of the Hong Kong dollar peg system, which keeps the region's monetary policy in sync with the U.S.
The reduction in interest rates is expected to alleviate the pressure of prolonged high interest rates on businesses and homeowners with mortgages in Hong Kong. Following HKMA's decision, banks like HSBC are anticipated to announce a decrease in the Hong Kong dollar's prime lending rate later.
