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Interest rates

Interest rates
An interest rate is the amount charged by banks to borrowers for any loan, which is a percentage of the principal. It is an important monetary tool for central banks to control inflation and boost economic growth. The Hong Kong Monetary Authority maintains its official base rate in lockstep with the US Federal Reserve because the Hong Kong dollar has been pegged with the US currency since 1983. Hong Kong commercial banks can decide when to change their prime lending rate and deposit rate, which may differ in terms of timing and margin of change.
Blocks of high-rise flats in Mid-Levels. Photo: Jonathan Wong
Hong Kong property

Rate rise expectations mount in Hong Kong following Fed chief’s comments

But property consultancy Knight Frank says likelihood of near-term rise in prime rate by city’s note-issuing banks remains low.

Japan

US Treasury’s Bessent calls on Japan to boost yen through rate increases

Hong Kong property

Can Hong Kong expect to see fewer creditor-led commercial property sales?

United States

Warsh signals US Fed may need to raise rates if above-target inflation lingers

This was the closest he has come to acknowledging interest rate hikes may be needed to ease price pressures.

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Federal Reserve Chairman Kevin Warsh attends a dinner at the Jackson Hole Economic Symposium on Thursday in Wyoming. Photo: Getty Images via AFP
Hong Kong property

Hong Kong housing rally faces test as property flippers retreat

Secondary home prices are the highest in three years, but July short-term trading of those held for less than a year was half the level seen in March.

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Banking & finance

Yuan, Hong Kong dollar bonds surge as issuers seek cheaper funding

Issuance of dim sum, panda and wonton bonds accelerates as Beijing promotes the yuan’s global use and deeper cross-border access broadens demand.

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Japan

Macroscope | Japan isn’t the only Asian economy giving bond markets a headache

Bond markets are nervous about central banks’ ability to contain inflation as South Korea, Indonesia and the Philippines face similar pressures.

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People walk past an electronics retail store in the Shinjuku district in Tokyo on August 17. Japan’s GDP grew at an annualised rate of 1.1 per cent in the April-June period from the previous three months. Photo: EPA
Hong Kong property

To rent or not to rent? That is the question for Hong Kong homebuyers

Rising residential rents and the looming shadow of interest rate increases have the city’s homebuyers trying to balance out the risks.

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Gold in Hong Kong

Why Fed moves trump geopolitical risks, China gold buying in analysts’ forecasts

Bullion forecasts have softened, LBMA’s survey shows, despite the World Gold Council reporting unprecedented demand in second quarter.

Hong Kong property

Hong Kong’s commercial property investment growth beats Asian peers

‘Highly active’ market in city tops Singapore and Australia, although base effect, assets in receivership contribute to increase, JLL says.

One Bedford Place, a distressed office tower in Tai Kok Tsui, was purchased by Singapore-based investor Wee Hur Holdings in June. Photo: Handout
Banking & finance

Hong Kong raises Silver Bonds coupon rate to 4.25% for latest batch

The city plans to issue up to HK$50 billion of Silver Bonds next month, with the higher rate intended to pre-empt a rise in US interest rates.

Elderly residents look out over the Tsim Sha Tsui waterfront in Hong Kong. Photo: SCMP/Eugene Lee
Japan

US-Japan trade thaw driven by shared yen for stronger currency

How long this boost in relations will last, though, depends on whether the yen can hold its value, experts say.

Banking & finance

Rare US-Japan intervention as yen hits 40-year low: what does it mean?

Washington steps in to save Tokyo’s weakened currency in first joint yen-buying action for almost 30 years, causing its value to surge.

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IPO

AI stock rout fells Innolight after mega Hong Kong IPO

Nvidia supplier Innolight declines on its Hong Kong trading debut as once AI-hungry investors turn increasingly nervous about sector’s huge spending plans.

The listing ceremony for Zhongji Innolight. Photo: Jonathan Wong
Banking & finance

HKMA warns of interest-rate risk as traders bet on September rate rise

HSBC, Standard Chartered, Bank of China (Hong Kong) keep their prime and savings rates unchanged, mirroring HKMA’s decision to hold steady.

The Hong Kong Monetary Authority at the International Financial Centre Building in Central, Hong Kong. Photo: Shutterstock
United States

US Fed holds interest rates steady despite Warsh’s inflation vow

The decision drew dissents from three policymakers on the 12-member panel, as Trump’s Iran war continues to push up prices.

Banking & finance

Standard Chartered posts 10% profit rise, launches US$1b buy-back

Share price surges on 38 per cent rise in wealth-management revenue, even as Middle East tensions and bad debt temper profit growth.

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Hong Kong property

Hong Kong homebuyers snap up 138 Garden Regency flats in New Territories

Top developer clears all units in weekend launch after offering a maximum 16 per cent discount.

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Potential buyers and estate agents line up at the sales office of SHKP’s Garden Regency at the International Commerce Centre. Photo: SCMP/Edmond So
US Federal Reserve

Macroscope | Silence isn’t golden for a world looking to Kevin Warsh’s Fed

While forward guidance often proved counterproductive, it is the US central bank’s job to inform markets about the outlook for monetary policy, not the other way round.

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United States

US inflation cools on brief ceasefire but Fed keeps rate hike option

New Fed Chair Kevin Warsh tells lawmakers the US central bank has ‘no tolerance for persistently elevated inflation’.

Hong Kong property

‘Good time to enter market’: rebates rise as Hong Kong property demand recovers

Mortgage battle intensifies as lenders raise cash rebates to lure buyers amid Fed rate uncertainty.

Banks are competing more aggressively for business after the property market gained momentum this year. Photo: Karma Lo
China deflation

China’s central bank vows flexibility amid uneven economic picture

PBOC pledges ‘moderately loose’ monetary policy given a ‘more complex and volatile’ environment and domestic ‘structural divergence’.

A readout from the People’s Bank of China's monetary policy committee meeting made no explicit reference to cutting reserve requirement ratios or policy interest rates. Photo: Reuters
Hong Kong property

Hong Kong prime office rents to increase as vacancies set to plateau

Despite increased supply and a vacancy rate plateauing at 14 per cent, prime office rentals will rise up to 5 per cent this year, says JLL.

International Property

Berkshire Hathaway’s multibillion-dollar Taylor Morrison buy to boost confidence

While Chinese investors are turning away from America, the conglomerate’s US$6.8 billion cash acquisition could encourage more home sales.

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United States

US Supreme Court boosts Trump’s power to fire officials, but Fed’s Cook keeps job

Justices let Trump fire agency heads, a dramatic expansion of his presidential power.

A person wears a MAGA (Make America Great Again) visor outside the U.S. Supreme Court, on the day justices have issued orders, in Washington, D.C., U.S., June 29, 2026. REUTERS/Cheney Orr TPX IMAGES OF THE DAY
Banking & finance

The panda bonds: how China uses assets to boost yuan, cement partnerships

Brazil is preparing to issue panda bonds, another indicator of the rising popularity of yuan-denominated assets amid a de-dollarisation trend.

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The world’s 10th largest economy, Brazil, is the latest country to issue panda bonds. Photo: DPA
Hong Kong property

Hong Kong property sales more measured as interest rate increase looms

Hong Kong Monetary Authority warns public to beware of interest rate uncertainties.

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US-China relations

‘A new chapter’: how Warsh’s US Fed debut is being viewed in China

A clearer focus on inflation and institutional changes could mark a watershed moment for the central bank, analysts say.

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