Lenders lowering time deposit rates

Several banks have started to lower their Hong Kong dollar time deposit rates as US President Donald Trump presses for interest rate cuts, though some lenders are still offering promotional rates to attract savers.

Trump has been ramping up pressure on Federal Reserve chair Jerome Powell to cut interest rates, even reportedly considering to remove him. However, markets currently see little chance of a rate cut in May, with a 54.2 percent probability of a 25-basis-point cut and 7.4 percent for a 50-basis-point cut in June, according to data from the CME’s FedWatch tool.

Oversea-Chinese Banking Corporation has lowered its three-month Hong Kong dollar time deposit rate to 3.38 percent from 3.45 percent, while keeping its six- and 12-month rates unchanged at 3.2 and 3 percent, respectively. The offers apply to new funds with a minimum deposit of HK$100,000.

Bank of East Asia has cut its online three- and six-month Hong Kong dollar time deposit rates to 3.05 and 2.95 percent, respectively. The offers, requiring a minimum of HK$10,000 in new funds, are available under its SupremeGold Banking Services.

China Construction Bank (Asia) has bucked the trend by raising its time deposit rates, offering 3.45 percent for three-month terms and 3.3 percent for six-months, while its 12-month rate stands at 3.1 percent. All rates apply to new funds with a minimum deposit of HK$1 million.

STAFF REPORTER