Hong Kong's three note-issuing banks will lower their prime lending rates by 0.125 percentage points, the first cut this year, after the US Federal Reserve reduced interest rates, The Standard reported Thursday.

HSBC (HKG:0005) and BOC Hong Kong (HKG:2388) will trim their rates to 5.125% from 5.25%, effective Friday and Monday, respectively, according to the report.

Standard Chartered (HKG:2888) Hong Kong will lower its rate to 5.375%, the report added.

Savings deposit rates will also drop by 0.125 percentage points to 0.125%.

The Hong Kong Monetary Authority earlier cut its base rate by 25 basis points in line with the Fed.

HKMA Chief Executive Eddie Yue Wai-man said the move should ease the debt burden for households and businesses and support the economy and property market.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)