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The following is issued on behalf of the Hong Kong Monetary Authority:
The Hong Kong Monetary Authority (HKMA) announced today (October 30) that the Base Rate is adjusted downward to 1.5% with immediate effect according to a new pre-set formula announced on October 8, 2008 and the decision of the US Federal Reserve on October 29 (US time) where the US federal funds target rate was reduced by 50 basis points.
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. According to the new formula announced on October 8, 2008, the Base Rate is set at 50 basis points above the prevailing US federal funds target rate.
For further enquiries, please contact:
Thomas Chan, Senior Manager (Press), at 2878 1480 or
Hing-fung Wong, Manager (Press), at 2878 1802
Ends/Thursday, October 30, 2008
Issued at HKT 09:10
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