BOCHK offers 4.8pc one-month deposit amid Fed uncertainty

BOC Hong Kong (2388) attracted new clients with an interest rate of 4.8 percent for one-month deposits, as the city's interbank rates remain low before the US Federal Reserve announces its decision on Thursday.

The major local bank said new clients can enjoy the high rate for time deposits of no more than HK$100,000, with the promotion running until September 30.

For existing clients, PAObank offers the highest time deposit rates across the city at 1.6 percent for three months, 2.2 percent for six months, and 2.4 percent for 12 months.

For US dollar deposits, Fubon Bank (Hong Kong) provides 4.2 percent for its three-month time deposits, the highest among local banks.

The Hong Kong Interbank Offered Rates have stayed low in recent weeks, with the mortgage-related one-month tenor losing 0.15 percentage points last week to 0.91679 percent on July 25.

For the Fed's announcement on Thursday, the market sees a 96 percent chance that interest rates will remain unchanged, though US President Donald Trump hinted at a possible rate cut after a rare visit to the central bank.

STAFF REPORTER