US$163 Billion Changes: HSBC and HKMA Rate Cuts and Their Implications
Thursday, 19 September 2024, 04:38
US$163 Billion Mortgage Market and Rate Cuts
Hong Kong’s banking giants, led by HSBC, have made a notable move by reducing their prime lending rates for the first time since 2019. This decision stems from the HKMA's reduction of its base rate by 50 basis points, coinciding with the US Federal Reserve's monetary adjustments.
Details on Rate Adjustments
- HSBC will lower its prime lending rate to 5.625% from Friday.
- The savings rate will also decrease to 0.625% for deposits over HK$5,000 (US$640).
- Bank of China (Hong Kong) mirrors this cut, effective September 23.
- As of the end of July, Hong Kong's homeowners hold HK$1.868 trillion in mortgage loans.
According to Eric Tso Tak-ming, vice-president at mReferral, while the cut might be minimal, it is essential for local property market stability.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.