The Strategist

Hong Kong Monetary Authority cuts rate following USA

03/04/2020 - 09:09

On Wednesday, the Hong Kong Monetary Authority (HKMA), which acts as the monetary regulator, announced that the base interest rate would be reduced by 50 basis points to 1.5% per annum, the regulator said in a release.

Bernard Spragg. NZ
Bernard Spragg. NZ
Appropriate measures followed a similar move in the United States, where the Federal Reserve System (Fed) unexpectedly lowered its key rate by 0.5 percentage points to 1-1.25% from 1.5-1.75%.

"The further development of the situation with the spread of coronavirus is still uncertain, and financial markets will continue to be subject to significant volatility. Investors must be careful about their risks," noted Head of HKMA Eddie Yue.

On December 31, 2019, the Chinese authorities informed the World Health Organization (WHO) about an outbreak of unknown pneumonia in the city of Wuhan in the central part of the country (Hubei Province). The number of infected people in mainland China exceeded 80 thousand, 2946 died. According to the latest WHO data, in 72 countries, the number of infected has exceeded 10 thousand; more than 160 people have died.