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Lowering of LAF rates
The Hong Kong Monetary Authority (HKMA) announced this (Thursday) morning a lowering of the key interest rates, the Liquidity Adjustment Facility (LAF) rates, by 25 basis points.
In line with the 25 basis points decrease in the US discount rate announced by the Federal Open Market Committee last night, the HKMA lowered the LAF bid and offer rates to 4% and 6% from 4.25% and 6.25% respectively, with immediate effect.
The determination of the best lending rate and interest rates on deposits with maturities of seven days or more is a matter for individual banks. The interest rates on retail deposits with maturities of less than seven days will be determined by the Hong Kong Association of Banks, having regard to the action taken this morning by the HKMA.
End
Hong Kong Monetary Authority money market operations
Cumulative
Time
$ million
(hours)
change (Smillion)
Opening balance in the account
2,412
0930
+90
Closing balance in the account
2,253
1000
+87
Change attributable to:
1100
+87
Money market activity
+41
1200
+87
LAF today
-200
1500
+87
1600
+41
LAF rate 4.00% bid/6.00% offer TWI 124.0 -0.1* 1.2.96