Morgan Stanley issued a Research Report indicating that after the Federal Reserve and Hong Kong Monetary Authority lowered interest rates by 25 basis points, several Hong Kong banks also followed suit by reducing the prime rate by 12.5 basis points, marking the third cut this year and aligning with the bank's expectations. Morgan Stanley stated that since the savings balance is about 2.3 times the book balance of mortgage loans, this adjustment of the prime rate by Hong Kong banks should help to offset the profit margin pressure caused by the decline in HIBOR.