The Monetary Authority today announced that it has decreased the base rate to 5.25% with immediate effect.

The decrease follows a 50-basis point downward shift in the target range for the US federal funds rate on September 18.

The base rate is the interest rate forming the foundation upon which the Discount Rates for repurchase transactions through the Discount Window are computed.

It is currently set at either 50 basis points above the lower end of the prevailing target range for the US federal funds rate or the average of the five-day moving averages of the overnight and one-month Hong Kong Interbank Offered Rates, whichever is higher.