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TOPIC

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.
Japan’s 10-year government bond yield, seen on a screen outside a brokerage in Tokyo on January 21, touched its highest in a century this month. Photo: Reuters
Japan

Macroscope | Could Japan stop being the ballast of the bond market?

A lower house election victory would give flight to Prime Minister Takaichi’s fiscal expansionism – and introduce upheaval far beyond Japan.

United States

Trump picks former Federal Reserve official Kevin Warsh to chair US central bank

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US Federal Reserve

Before Trump’s Fed pick, a new clear favourite emerges for chair

Banking & finance

Hong Kong regains lustre as stocks rally, property picks up

A booming IPO market, lower interest rates and the return of overseas visitors are boosting Hong Kong’s economy, stock market and Exchange Fund.

Photo: Google Maps
Banking & finance

HKMA warns of risks as Hong Kong follows Fed in keeping interest rate unchanged

Analysts see the first US rate cut in June, with a falling Hong Kong interbank rate set to bring relief to borrowers.

United States

US Federal Reserve holds interest rates steady, defying Trump pressure

The US president had been pushing for cuts at the central bank’s first policy gathering this year.

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Hong Kong property

Hong Kong home prices snap 3-year downturn as rents surge to a new high

The property market has turned a corner, buoyed by rate cuts, stock gains and talent schemes, analysts say.

The property market turnaround has set the tone for a broader rebound this year, analysts say. Photo: Sam Tsang
Bonds

Spiking yen fuels risk-averse mood as investors take defensive stance

Yen hits two-month high amid fears US and Japan will intervene to prop up the currency ahead of Japan’s election next month.

Hong Kong Monetary Authority (HKMA)

How lower US interest rates can help Hongkongers amid steady local prime rates

Most new mortgages, many corporate loans are based on interbank rates, which will continue to fall, monetary authority’s deputy chief says.

Hong Kong property

All signs point to rebound in Hong Kong’s housing market: Morgan Stanley analyst

A combination of factors – falling interest rates, rising rents and stamp duty removal – bodes well for the market after years of downturn.

Praveen Choudhary, head of Asia gaming, Hong Kong and India property research at Morgan Stanley, has covered Asian property markets through many boom-and-bust cycles. Photo: Jonathan Wong
Bonds

Japan bond volatility raises contagion alarm for Asia’s stocks and debt

Japan’s yield spike is testing safe-haven assumptions, with markets debating whether the movement is local or systemic.

A monitor displays long-term interest rates in Tokyo, Japan, on January 19, 2026. Photo: EPA
Hong Kong property

Hong Kong’s housing market gets a vote of confidence from major banks

Most financial institutions forecast price gains ranging from 5 to 10 per cent, supported by supply constraints and end-user demand.

Donald Trump

Trump-Powell conflict over Fed escalates with threat of criminal indictment

Jerome Powell calls legal threats against him pretexts to pressure the US Fed over policy.

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Hong Kong property

Hong Kong’s SHKP continues sell-out streak at Sierra Sea

Homebuyers snap up all 213 new flats on sale at Sierra Sea’s Phase 2A as of 9pm on Saturday.

Sun Hung Kai Properties’ deputy managing director Victor Lui (left) and real state agency general manager Allen Woo hold a banner marking the latest Sierra Sea sell-out. Photo: Handout
Hong Kong property

Hong Kong developers rush new flats as sentiment lifts, pressuring recovery

Wheelock and Kerry plan to roll out more than 4,500 units in 2026, even as analysts warn that inventory overhang may cap price gains.

Kerry Properties plans to launch more than 3,300 flats this year, including those at Lohas Park phase 13 in Tseung Kwan O. Photo: Handout
China inflation

China must take action to avoid Japan-style deflation spiral, scholars warn

Unless Beijing introduces more forceful policies, consumers could get locked into a mindset that is ‘nearly impossible to break’, scholars say.

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Hong Kong Monetary Authority (HKMA)

Hong Kong interbank rates forecast to drop on expected 2026 US monetary easing

Savings rates near zero prevent further prime rate reductions, though Hibor-linked loans will get cheaper, analysts say.

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United States

Opinion | Why Donald Trump will focus on the Fed in 2026

With the US midterm elections looming, the White House seeks victory over inflation and the stimulating effects of lower borrowing costs.

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US President Donald Trump salutes after disembarking from Air Force One at Joint Base Andrews on October 30. Photo: Reuters
China property

China housing market gets VAT relief on resales but demand outlook stays subdued

Policy lowering VAT to 3 per cent reduces seller costs but demand recovery is key to stabilising the housing sector, property agents say.

Hong Kong property

Hong Kong’s SHKP nudges up prices on latest Sierra Sea flats on offer

Developer offers 148 units in Phase 2A of Sierra Sea development, expecting strong demand from homebuyers.

Hong Kong property

Hong Kong primary home sales to see decade high as small flats perk up market

Attractive discounts, easing mortgage costs and policy support drive the market’s shift towards flats that cost below US$1.3 million.

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Primary home sales are projected to reach 21,000 next year. Photo: Dickson Lee
Hong Kong property

Yau Tong project nearly sells out amid hopes of home market recovery in 2026

The flats at One Park Place were in high demand after developers Sino Land, CSI Properties and MTR offered discounts of up to 15 per cent.

A view of One Park Place in Yau Tong. Photo: Google maps
Cryptocurrency

Bitcoin drops below US$90,000 as AI worries sour risk appetite

The fall signals renewed market jitters after the historic crypto crash in October.

Banking & finance

Six major Hong Kong banks keep prime rates unchanged despite HKMA base rate cut

Savings rates near zero limit room for cuts as lenders protect profitability margins, analysts say.

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United States

US Fed delivers quarter-point rate cut as policymakers weigh inflation outlook

Move falls short of Trump’s demands as debate over Fed independence intensifies and markets brace for global spillover effects.

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US Federal Reserve Chair Jerome Powell is set to step down in May. Photo: Reuters
Hong Kong property

Hong Kong home prices to rise in 2026 due to mainland Chinese buyers, rate cut

‘Housing prices have bottomed out, and the outlook for 2026 is cautiously optimistic,’ JLL Hong Kong chairman Joseph Tsang says.

Homebuying sentiment is expected to rise in 2026. Photo: Dickson Lee
China trade

‘Strong breakwaters’: China’s central bank vows to shield from external shocks

Governor Pan Gongsheng says policy must prioritise the domestic economy, warning against ‘excessive policy swings’ that could undermine long-term stability.

Commodities

Silver surge outpaces gold on global squeeze, rising interest rate-cut hopes

White metal doubles in value this year to reach record high, outshining gold’s 60 per cent rise.

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