HONG KONG, Jan 23 (Reuters) - HSBC Holdings Plc (0005.HK: Quote, Profile, Research) (HSBA.L: Quote, Profile, Research) said on Wednesday it would lower its best lending rate in Hong Kong by 75 basis points to 6.00 percent.
The new rate will come into effect from Thursday, the bank said. It will also cut its deposit rates.
HSBC last changed its best lending rate in December, when the bank cut the rate by 25 basis points.
The Hong Kong Monetary Authority (HKMA) had earlier on Wednesday cut the base rate charged through its overnight discount window by 75 basis points to 5.00 percent.
That move came after the U.S. Federal Reserve slashed benchmark interest rates by three-quarter of a percentage point to 3.5 percent in a bid to head off a recession and halt a global rout in stocks.
Hong Kong tracks U.S. interest rate moves because its currency is pegged to the U.S. dollar, although local banks have some leeway to lag U.S. moves when setting prime rates. (Reporting by Alison Leung; Editing by Anne Marie Roantree)
Source: http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSHKU00094320080123
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