HK banks increase rates for the first time in 12 years

HK banks increase rates for the first time in 12 years

HK banks increase rates for the first time in 12 years

This latest move, which is the third this 2018 and the eight ever since the end of "quantitative easing" in December 2015, will force commercial banks in Hong Kong to raise the prime rate for the first time after 12 years. According to the website of HKMA, the base lending rate raised by 25 basis points to 2.5 percent, effective immediately.

HSBC Holdings Plc raised its main lending rate in Hong Kong for the first time in more than a decade, closing the chapter on an era of ultra-low borrowing costs that sent property prices skyrocketing.

HSBC and Hang Seng each boosted their lending rate 12.5 basis points to 5.125 per cent, while Standard Chartered lifted its rate from 5.25 per cent to 5.375 per cent.

The result was the siphoning of huge liquidity reserves of the banking system of the city, that contributed previously to control the interbank rate Hong Kong InterBank Rate (HIBOR).

Hong Kong tracks USA interest rate moves because its currency is pegged to the US dollar, although local banks have some leeway to lag USA moves when setting their "prime rates". "Going forward, interest rates will go up", said Hong Kong Finance Secretary Paul Chan.

The HKMA raised interest rates to 2.5 percent.

Limiting your child's screen time could improve cognition
In the meantime he urged parents and health officials to consider two hours recreational time online as the maximum daily limit. Less than two hours of screen time a day was the one factor most linked to better performance in the test.

Several other commercial banks in the territory semi-autonomous southern China should take example on HSBC and Standard Chartered, and raise their base rate, which implies an increase in the cost of credit that are backed.

Higher rates threaten gains in home prices that have been on a bull run for most of the past 15 years.

"The impact on our asset market is yet to be seen but this puts a high risk on the asset market because of the interest rate burden, because of the uncertainty brought about by the escalating trade conflicts between the USA and China, as well as external uncertainties in the emerging markets and Europe", Chan said at a briefing following the HKMA's decision. The average mortgage payment-to-income-ratio in Hong Kong is about 35 percent, she said. "The super-low interest rate environment in Hong Kong probably will finish". But cooling the world's bubbliest property market could tax economic activity.

The HKMA has spent billions this year supporting the currency as it hits the bottom end of its permitted HK$7.75-7.85 band against the United States dollar.

As per the data of the monetary authority, the outstanding mortgage loans in Hong Kong stood at HK$1.26 trillion (US$161.3 billion) at the end of June.

Recommended News

  • The first Apple computer in history sold for 375 000$

    The first Apple computer in history sold for 375 000$

    A working version of Apple's very first product, the Apple I computer , has been sold for $375,000 at an auction in Boston . Cupertino, California-based Apple recently became the world's first publicly traded company to be valued at $1 trillion.
    Nintendo wins damage suit against Tokyo Super Mario go-kart business

    Nintendo wins damage suit against Tokyo Super Mario go-kart business

    Nintendo also claimed that MariCar was using Nintendo costumes for publicity and sales without the publisher's permission.
    This Is Why Fortnite Vaulted Those Weapons For Season 6

    This Is Why Fortnite Vaulted Those Weapons For Season 6

    Calamity is a progressive skin, which means that you'll be able to unlock new components to it as you play through the season. These new areas contain Shadow Stones, a powerful new item that grants you temporary invisibility (but more on that later).
  • Iphone XS, XS Max Get HDR Support For YouTube

    Iphone XS, XS Max Get HDR Support For YouTube

    Less than a week since release, reports are already coming in that the iPhone XS and XS Max are not all they're cracked up to be. According to Apple , the new watch was "redesigned and re-engineered to help you stay even more active, healthy, and connected".
    Ted Turner battling Lewy body dementia

    Ted Turner battling Lewy body dementia

    Asked about his symptoms, Turner described them as "Tired". "That's the main symptoms, and forgetfulness", he adds. But Turner said that was a misdiagnosis. "I think they're sticking with politics a little too much", he did say.
    Goldman Sachs launches new online retail bank, Marcus

    Goldman Sachs launches new online retail bank, Marcus

    Ms Bowes says that by taking out a top-paying account such as Marcus, you can get up to 10 times more interest in a year. The Wall Street bank has entered the United Kingdom retail banking market with the launch of its Marcus savings account.
  • 'WHAT IS YES?': 'Jeopardy' contestant wins with on-air proposal to girlfriend

    'WHAT IS YES?': 'Jeopardy' contestant wins with on-air proposal to girlfriend

    Pascuzzi didn't win - he came in second, behind returning champion Evelyn Rubin - but he said it himself, he's still a victor . But he arranged an unforgettable moment with help from contestant coordinator Corina Nusu.
    Macaulay Culkin taps J.K. Rowling for Fantastic Beasts role

    Macaulay Culkin taps J.K. Rowling for Fantastic Beasts role

    Yesterday's reveal that actress Claudia Kim is playing Nagini in Fantastic Beasts caused some fans to retaliate, and now J.K. There are theories suggesting that the Fantastic Beasts movies is going to be a Voldemort origin story.
    NAFTA deadline not firm as Mexico pushes USA  for Canadian inclusion

    NAFTA deadline not firm as Mexico pushes USA for Canadian inclusion

    They only said they didn't request a formal meeting. "Canada has a long way to go", Trump said on Wednesday. Some Democrats said they could not support a NAFTA trade deal without Canada.
  • World's first human case of rat disease found in Hong Kong

    World's first human case of rat disease found in Hong Kong

    The virus causes hepatitis, an inflammation of the liver, and can not be cured but usually heals on its own. Symptoms include fever, vomiting and jaundice, and in rare cases liver failure.
    College basketball player killed in shooting

    College basketball player killed in shooting

    King Alexander released a statement saying that the school has been shaken: "We are stunned and shaken". No arrests have been made, but the investigation, which has been classified as a homicide , is ongoing.
    Malia Obama Rocks Out in Music Video Debut

    Malia Obama Rocks Out in Music Video Debut

    The one featuring Barack Obama's oldest daughter - entitled Walking on Air - has racked more than four times as many in a week. In the clip for the bouncy indie-pop ditty, the band is auditioning for someone to replace flaky member Chris.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.