HSBC to leave best lending rate in Hong Kong unchanged at 5%

HSBC to leave best lending rate in Hong Kong unchanged at 5%
FILE PHOTO: A view shows the entrance to an HSBC Bank branch in New York, U.S. August 1, 2011. REUTERS/Shannon Stapleton

HONG KONG : HSBC Holdings said on Thursday it would leave its best lending rate in Hong Kong unchanged at 5 per cent, despite a rise in the base rate of the city’s central bank, charged through its overnight discount window.

The Hong Kong Monetary Authority (HKMA) raised the rate by 75 basis points to 2.75 per cent, hours after the U.S. Federal Reserve delivered a rate hike of the same size.

Hong Kong tracks U.S. interest rate moves because its currency is pegged to the U.S. dollar, although banks in the global financial hub have some leeway to lag U.S. moves when setting prime rates.

 

 

Source: Reuters