Hong Kong Makes First Rate Cut Since 2020, Boosting Economy
- Monetary Authority reduces rate by 50 basis points to 5.25%
- Lower loan costs may stop home price decline in 2025: analysts
The cut in Hong Kong will be welcome relief for businesses and consumers, who have faced years of steep borrowing costs.
Photographer: Paul Yeung/BloombergThis article is for subscribers only.
Hong Kong’s beleaguered real estate market is set for some relief after the city cut its base interest rate for the first time in four years, mirroring the Federal Reserve’s policy easing.
The Hong Kong Monetary Authority lowered the rate by a half percentage point to 5.25% Thursday from the highest level since 2007. That move was widely anticipated as the city has a currency peg to the greenback and follows the Fed in lockstep.