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Economy

Hong Kong cuts base interest rate after Fed move

HONG KONG (Reuters) -- The Hong Kong Monetary Authority (HKMA) on Thursday lowered its base rate charged through the overnight discount window by 25 basis points to 2.25%, hours after the U.S. Federal Reserve delivered a rate cut of the same margin.

Hong Kong's monetary policy moves lock-step with the United States' as the city's currency is pegged to the greenback at a tight range of 7.75-7.85 per dollar.

The Fed lowered rates on Wednesday for the second time this year "to provide insurance against ongoing risks" including weak global growth and resurgent trade tensions, Chair Jerome Powell said.

The Hong Kong Dollar was last seen at 7.8297 per dollar, little changed on the day.

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