The Hong Kong Monetary Authority (HKMA) on Friday cut its base rate charged via the overnight discount window by 25 basis points to 5.0 percent, tracking a move by the US Federal Reserve.

The base rate is currently set at either 50 basis points above the lower end of the prevailing target range for the US federal funds rate or the average of the five-day moving averages of the overnight and one-month Hong Kong Interbank Offered Rates (HIBORs), whichever is the higher.

READ MORE: US Fed slashes interest rates by 25 basis points

Following the 25-basis point downward adjustment in the target range for the US federal funds rate, 50 basis points above the lower end of the prevailing target range for the US federal funds rate is 5 percent, while the average of the five-day moving averages of the overnight and one-month HIBORs is 3.87 percent.

Hong Kong's monetary policy moves in lock-step with the United States as the city's currency is pegged to the greenback in a tight range of 7.75-7.85 per dollar.