Morgan Stanley published a Research Report indicating that following the Federal Reserve and the Hong Kong Monetary Authority reducing interest rates by 25 basis points, several local banks also followed suit by lowering the best lending rate by 12.5 points, marking the third reduction in the best lending rate this year, in line with the bank's expectations.

Morgan Stanley stated that, since the savings balance is approximately 2.3 times the book balance of mortgage loans, the reduction in the best lending rate by Hong Kong banks should help offset the profit margin pressure caused by the decline in HIBOR. (js/w)

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