July 31, 2019 / 11:38 PM / 4 months ago

Hong Kong central bank cuts interest rate for first time in decade

HONG KONG, Aug 1 (Reuters) - The Hong Kong Monetary Authority (HKMA) on Thursday cut its base rate charged through the overnight discount window by 25 basis points to 2.5%, its first cut since late 2008, in line with the U.S. Federal Reserve’s move.

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

The Fed cut rates on Wednesday for the first time since the global financial crisis, reflecting central banks’ bias towards easing policy amid slowing global economic growth and the protracted Sino-U.S. trade war.

The Hong Kong dollar was last seen little changed at 7.8282 per dollar.

Reporting by Noah Sin and Donny Kwok; Editing by Sam Holmes

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