Hong Kong Monetary Authority raises rate for first time in three years
HSBC and StanChart say they will keep best lending rates in Hong Kong unchanged
The Hong Kong Monetary Authority (HKMA) increased its base interest rate by 25 basis points to 4.25% on Thursday, September 17, matching a rate hike by the US Federal Reserve. This is the first increase for the HKMA since July 2023. Hong Kong's currency is pegged to the US dollar within a narrow band of 7.75 to 7.85 per dollar. Major banks HSBC, StanChart, and Bank of China maintained their best lending rates and savings deposit rates unchanged at 5% and 5.25% respectively.
HKMA CEO Eddie Yue stated that the interest rate differential between the Hong Kong dollar and US dollar will widen, potentially leading to a further easing of the Hong Kong dollar towards the lower end of its band.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
