Adjustment of the Base Rate

The Hong Kong Monetary Authority (HKMA) announced today (Friday) that the Base Rate was adjusted downward by 25 basis points to 3.5% with immediate effect according to a pre-set formula. The reduction in the Base Rate follows the 25 basis points cut in the US federal funds target rate on 30 April (US time).

The Base Rate is the interest rate forming the foundation upon which the Discount Rates for repurchase-agreement transactions through the Discount Window are computed. The Base Rate is currently set at either 150 basis points above the prevailing US federal funds target rate or the average of the five-day moving averages of the overnight and one-month HIBORs, whichever is the higher.

For further enquiries, please contact:
Thomas Chan, Senior Manager (Press), at 2878 1480 or
Hing-fung Wong, Manager (Press), at 2878 1802

Hong Kong Monetary Authority
2 May 2008