Local banks lift best lending rates after Fed hike
Leading local banks HSBC, Hang Seng and Bank of China (Hong Kong) on Thursday announced higher interest rates in response to the latest hike by the US Federal Reserve. All three banks said they will raise their best lending rates by 12.5 basis points to 5.875 percent – a 15.5-year high – with their savings rates going up by the same margin. The new rates will take effect on Friday for HSBC and Hang Seng, and on Monday for the Bank of China. Earlier on Thursday, the city's de facto central bank announced it was increasing its base rate to 5.75 percent with immediate effect. Chief vice president of mReferral Mortgage Brokerage Services, Cho Tak-ming, said it is only a slight increase and the impact on most homeowners' mortgage repayment ability would be limited. Ivy Wong, the managing director of Centaline Mortgage Broker, said she expects mortgage rates to remain below 4 percent this year, as the “rate hike cycle is nearing its peak”.