Lower rates will not only reduce financing costs but revive investor confidence and spending sentiment, experts say.

The Hong Kong Monetary Authority (HKMA) on Thursday cut its base rate charged via the overnight discount window by 50 basis points to 5.25%, tracking a move by the U.S. Federal Reserve. 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.

The UAE Central Bank cut its benchmark interest rate on Wednesday, joining the US Federal Reserve in cutting the policy rate for the first time in four years. After hitting the pause on increasing interest rates since July last year,