HSBC, Standard Chartered among top Hong Kong banks raising prime rates as HKMA warns of pressure on local funding costs
- The HKMA raised its key rate to a 15-year high, in what could be the last hike in 2023; it also intervened in the currency market to defend the Hong Kong dollar
- HSBC, Standard Chartered, Bank of China (Hong Kong) and other lenders will raise their prime rates by 12.5 basis points from as early as Friday
HSBC and its subsidiary Hang Seng Bank will reset their best lending rates to 5.75 per cent from 5.625 per cent, starting on Friday, according to separate statements, while Bank of China (Hong Kong) will reprice to the same level from Monday. Standard Chartered and the Bank of East Asia have decided to raise to 6 per cent from Monday.
All of them will concurrently increase their savings rates by 12.5 basis points to 0.75 per cent per annum.
The changes are the first by the lenders this year, after three hikes in 2022. The HKMA earlier on Thursday lifted its base rate by a quarter-point to the highest level since 2008 in lockstep with the Federal Reserve’s move that some analysts regarded as the final increase this year.
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“We believe the adjustments are appropriate considering the macroeconomic environment, [interest rate] trends as well as the impact on our economy,” Luanne Lim, CEO of HSBC Hong Kong, said. “We will continue to monitor the external environment and be prepared to adjust our rates if needed.”
