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The following is issued on behalf of the Hong Kong Monetary Authority:
The Hong Kong Monetary Authority (HKMA) announced today (January 31) that the Base Rate was adjusted downward by 50 basis points to 4.50% with immediate effect according to a pre-set formula. The reduction in the Base Rate follows the 50 basis points cut in the US federal funds target rate on January 30 (US time).
The Base Rate is the interest rate forming the foundation upon which the Discount Rates for repurchase-agreement transactions through the Discount Window are computed. The Base Rate is currently set at either 150 basis points above the prevailing US federal funds target rate or the average of the five-day moving averages of the overnight and one-month HIBORs, whichever is the higher.
For further enquiries, please contact:
Thomas Chan, Senior Manager (Press), at 2878 1480 or
Hing-fung Wong, Officer (Press), at 2878 1802
Ends/Thursday, January 31, 2008
Issued at HKT 09:24
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