Major banks lift prime rates, first time in 4 years
Hong Kong's note-issuing banks HSBC, Standard Chartered and Bank of China on Thursday announced that they are raising their best lending rates by 12.5 basis points. This will bring HSBC's prime rate to 5.125 percent, Standard Chartered's to 5.375 percent and Bank of China's to 5.125 percent.  HSBC and Standard Chartered's increases will take effect on Friday, while Bank of China's hike is effective from Monday. The banks have not lifted their prime rates since September 2018, when they added 12.5 basis points. Their last best lending rate adjustments were made in November 2019, with trims of 12.5 basis points. Meanwhile, Hang Seng Bank said its best lending rate will go up by 12.5 basis points to 5.125 percent from Tuesday.  HSBC is also raising its Hong Kong dollar and US Dollar savings rates, by 12.4 basis points and 25 basis points respectively. Standard Chartered said it is lifting its Hong Kong dollar savings rates by 12.5 basis points, while Bank of China announced a 12.4-basis-point increase to its Hong Kong savings rates. The moves come after the Monetary Authority announced a 75-basis point increase to its benchmark rate, to track an overnight interest rate hike by the US Federal Reserve. Hong Kong authorities follow the footsteps of the Fed in interest rate adjustments under a pegged exchange rate system with the greenback. But individual banks have lagged behind the official moves due to liquidity in the banking system. _____________________________
Last updated: 2022-09-22 HKT 17:47 