Hong Kong banks take Fed's lead, maintain prime rates

Hong Kong's major local lenders including the Hongkong and Shanghai Banking Corporation said they are keeping its prime rate unchanged, following the hold of the US Federal Reserve.

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

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

The Hong Kong Monetary Authority, the city’s de facto central bank, has kept its base rate unchanged at 4.75 percent.

The HKMA said the Fed’s decision to keep rates unchanged was in line with market expectations. It projected that the outlook for the local currency market and interbank rates remains subject to a range of variables, including carry trades, supply and demand dynamics in the Hong Kong dollar driven by capital market activity, and other seasonal factors.

STAFF REPORTER