Hong Kong lenders keeping prime rates steady

Major local lenders including the Hongkong and Shanghai Banking Corporation said they are keeping their prime rates unchanged, following the widely expected hold of the US Federal Reserve.

HSBC and BOC Hong Kong (2388) are holding their prime rates at 5.25 percent. Standard Chartered Hong Kong's rate remained at 5.5 percent.

Hang Seng Bank (0011) also said it will hold its rate steady at 5.25 percent.

These lenders are also maintaining their interest rates for Hong Kong dollar deposit accounts.

HSBC lowered the rate associated with mortgage loans by 0.125 percentage points in December.

The Hong Kong Monetary Authority kept the base rate unchanged at 4.75 percent.

The city’s de facto central bank said the Fed’s decision to keep rates unchanged was in line with market expectations.

A slew of recent tariff measures slammed by US President Donald Trump has added uncertainty to the country’s inflation outlook and broader economy, prompting a more cautious Fed stance in monetary policy, HKMA said.

STAFF REPORTER