Hong Kong cuts interest rates as economy enters recession
Commercial banks cut lending rates for the first time since 2008, as economy contracts sharply
The Hong Kong Monetary Authority (HKMA) cut its policy rate for the third time in a row today (October 31), following the Federal Reserve’s easing move the previous day.
The city’s de facto central bank cut its base lending rate by 25 basis points to 2%, effective immediately. Data released after the decision suggests Hong Kong has crashed into a sharp recession, with two consecutive quarter-on-quarter contractions.
Hong Kong’s economy is facing heavy downward pressure, partly because of “some
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