HK cuts key rate to 0.50pc

---

HONG KONG, Dec 17 (AFP): The Hong Kong Monetary Authority today cut its key interest rate by 100 basis points to 0.50 per cent, following the US Federal Reserve's slashing of its base lending rate to virtually zero.
The de facto central bank lowered its base rate-the reference rate for the lending of overnight funds to local banks from 1.5 per cent, an HKMA spokesman told the news agency.
The territory's currency peg to the US dollar ties its monetary policy to that of the US, so the HKMA generally follows any interest-rate adjustments by the Fed.