HKMA cuts rates to bolster the banking system

Hong Kong leads other central banks in cutting interest rates to boost liquidity and stem the plunge in global stockmarkets.

The Hong Kong Monetary AuthorityÆs HKMA one percentage point cut in its benchmark interest rate yesterday is seen by many economists as a move to unlock liquidity and to help bolster confidence in the local banking system.

Hong KongÆs move was followed by a slew of other central banks, including the Federal Reserve, which eased rates in a coordinated effort to stem the sharp falls in the global stockmarkets. China too announced a rate cut, its second in a month....

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