Hong Kong Banks Hold Prime Rates at 5%-5.25% as HKMA Keeps Base Rate at 4%
Updated
Updated · 香港電台 · Jun 18
Hong Kong Banks Hold Prime Rates at 5%-5.25% as HKMA Keeps Base Rate at 4%
3 articles · Updated · 香港電台 · Jun 18
Summary
HSBC and Bank of China (Hong Kong) kept prime lending rates at 5%, while Standard Chartered held at 5.25%, hours after the HKMA left its base rate unchanged.
The HKMA's 4% decision followed the U.S. Federal Reserve's move to keep its target range at 3.5%-3.75% steady in Kevin Warsh's first policy meeting as chair.
Unanimous Fed voting for the first time in a year masked a hawkish signal: policymakers still projected a year-end rate hike as U.S. inflation risks remained elevated.
The HKMA said Hong Kong markets remain orderly but warned U.S. policy shifts could still feed through local rates under the currency peg, urging borrowers and property buyers to manage interest-rate risk.