Hong Kong's base rate has been lowered to 1.5% after the US Federal Reserve's funds target rate was cut by 50 basis points, the Hong Kong Monetary Authority says.

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. 

According to a new formula announced on October 8, the base rate is set at 50 basis points above the prevailing US federal funds target rate.