The Hong Kong Monetary Authority (HKMA) on Thursday cut its base rate charged via the overnight discount window by 50 basis points to 5.25%, tracking a move by the U.S. Federal Reserve. Hong Kong's monetary policy moves in lock-step with the United States as the city's currency is pegged to the greenback in a tight range of 7.

Hong Kong cut its base rate cut by 50 basis points for the first time in four years, kicking off a cycle that would help businesses and homeowners.

Hong Kong’s de facto central bank today (September 19) cut its base rate by 50 basis points to 5.25%. Meanwhile, Taiwan’s central bank left its key rates unchanged. Hong Kong’s monetary policy closely tracks that of the US. The territory’s currency is pegged to the US dollar in a tight range of between HK$7.75 and HK$7.85.

Hong Kong’s beleaguered real estate market looked set for some relief after the city cut its base interest rate for the first time since 2020, mirroring the Federal Reserve’s policy easing.Most Read from BloombergCalifornia’s Anti-Speeding Bill Can Be a Traffic Safety BreakthroughAOC Proposes $30 Billion Social Housing AuthorityNew York City’s Transit System Plans $65.

HSBC Holdings said it was cutting its best lending rate in Hong Kong by 25 basis points to 5.625% from 5.875% effective Sept. 20. That followed a 50 basis points cut in the base rate charged through the overnight discount window of the city's de facto central bank.

HSBC Holdings Plc cut its key benchmark rate in Hong Kong for the first time since 2019, a move likely to hit margins while bringing relief to homeowners and borrowers in the Asian financial hub.

HSBC and Bank of China (Hong Kong) trimmed their prime lending rates by a quarter percentage point, leading the first rate cut among Hong Kong lenders since 2019.