The Hong Kong Monetary Authority announced on the 19th that according to the preset formula, the base rate was lowered to 5.25%, effective immediately.
The HKMA said that the base rate was set based on two data, namely the lower limit of the current US federal funds rate target range plus 50 basis points, or the average of the 5-day moving average of overnight and one-month Hong Kong interbank offered rates, whichever is higher.
The HKMA said that the United States lowered the federal funds rate target range by 50 basis points on the 18th local time. The lower limit of the current US federal funds rate target range plus 50 basis points is 5.25%, while the average of the 5-day moving average of overnight and one-month Hong Kong interbank offered rates is 3.21%. According to the preset formula, the base rate is set at 5.25%.