HONG KONG (Reuters) - HSBC (HK:0005) (L:HSBA) on Thursday cut its best lending rate in Hong Kong for the first time since the global financial crisis, lowering it by 12.5 basis points to 5%, effective on Friday, November 1.
George Leung, an advisor at the lender, told reporters on Thursday that the cut could help businesses and spur consumption in the city. Hong Kong is facing its first recession since 2009.
The Hong Kong Monetary Authority cut interest rates by 25 basis points to 2% on Thursday, hours after the Federal Reserve cut by the same margin. Hong Kong policy moves lock-step with the U.S., as obliged by the currency peg with the greenback.