The Hong Kong Monetary Authority (HKMA) on Thursday cut its base rate charged via the overnight discount window by 50 basis points to 5.25%, tracking a move by the U.S. Federal Reserve. Hong Kong's monetary policy moves in lock-step with the United States as the city's currency is pegged to the greenback in a tight range of 7.

The cut in Hong Kong will be welcome relief for businesses and consumers, who have faced years of steep borrowing costs.

The Federal Reserve lowered its benchmark interest rate by a half percentage point Wednesday, in an aggressive start to a policy shift aimed at bolstering

Hong Kong cut its base rate cut by 50 basis points for the first time in four years, kicking off a cycle that would help businesses and homeowners.

The U.S. Federal Reserve on Wednesday lowered its benchmark interest rate by half of a percentage point, the first cut in more than four years, in a major policy shift less than seven weeks away from the presidential election.