The Hong Kong Monetary Authority Wednesday announced a base rate cut by 25 basis points, following a similar move by the Unites States Federal Reserve aimed at saving the financial markets and the economy.
The decision by the Monetary Authority, virtually the central bank of the Hong Kong Special Administrative Region, was announced "with immediate effect," thereby lowering the base rate to 5.75 percent, the Monetary Authority said in a statement.
The rate cut by 25 basis points by the U.S. Federal Reserve overnight had been less than what investors had expected, leading to falls over the U.S. markets and further affecting the performance of other stock markets, including the Hong Kong bourse.
Joseph Yam, chief executive of the Hong Kong Monetary Authority, said he expected the Hong Kong stock market to be uncertain, with potential drastic movements ahead, the local RTHK television reported with a televised interview released Wednesday.
Hong Kong stock market lost 615.2 points, or 2.1 percent, to open at 28,611.84 Wednesday and finished morning trading even lower at 28,550.32.
China's mainland authorities are also tightening monetary policies to cool down inflation, with consumer price index in November up 6.9 percent over a year earlier.
Source: Xinhua
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