Hong Kong lowers benchmark lending rate

HONG KONG: The Hong Kong Monetary Authority on Wednesday lowered the base rate charged through its overnight discount window by 100 basis points to 0.50 percent.

The central bank's move followed the U.S. Federal Reserve decision to cut interest rates to a record low.

Hong Kong tracks U.S. rate moves because its currency is pegged to the dollar. Local banks, however, have some leeway to lag U.S. rate moves and may not follow the U.S. rate cut, analysts said.

The monetary authority sets its base rate through a formula that includes the U.S. federal funds rate.