Hong Kong’s banks hold prime rates steady after Fed’s unanimous vote to ‘keep options open’ on when to start cutting the cost of money
- HSBC, Hang Seng Bank and Bank of China (Hong Kong) kept their prime lending rate unchanged at 5.875 per cent, paying 0.875 per cent per annum for deposits
- Standard Chartered kept the interest it charges its best customers at 6.125 per cent, paying 0.875 per cent for deposits
Hong Kong’s banks said they would keep their prime rates unchanged in line with the city’s monetary authority, offering a breather to businesses and mortgage borrowers as the economy struggles to crawl out of a stubborn slump.
HSBC, its Hang Seng Bank unit and Bank of China (Hong Kong) kept their prime lending rate unchanged at 5.875 per cent, paying 0.875 per cent per annum for deposits. Standard Chartered kept the interest it charges its best customers at 6.125 per cent, paying 0.875 per cent for deposits.
“We remain upbeat on the potential for stocks and fixed income to outperform cash this year,” said Tai Hui, APAC chief market strategist of JPMorgan Asset Management in a statement after the Fed decision. “Since we still see the US achieving a soft landing as the most likely scenario, we believe investors should remain invested.”
Fed Chair Jerome Powell took a circumspect tone in his press conference after the meeting of the Federal Open Market Committee (FOMC), indicating that the Fed is in no rush to reduce rates.
