Hong Kong central bank cuts interest rate, watches Fed move By Reuters

HONG KONG (Reuters) – The Hong Kong Monetary Authority (HKMA) cut the key rate applied through the overnight discount window by 50 basis points to 5.25 percent on Thursday, following a move by the U.S. Federal Reserve.

Hong Kong’s monetary policy moves in 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.

On Wednesday, the U.S. central bank kicked off an anticipated round of interest rate cuts with a half-percentage-point cut larger than usual, and policymakers see another 50 basis points of cuts in 2024.