{"id":1652409,"date":"2022-09-22T05:05:37","date_gmt":"2022-09-22T09:05:37","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1652409"},"modified":"2022-09-22T05:06:12","modified_gmt":"2022-09-22T09:06:12","slug":"hong-kong-central-bank-raises-rate-hsbc-and-standard-chartered-follow","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/hong-kong-central-bank-raises-rate-hsbc-and-standard-chartered-follow\/","title":{"rendered":"Hong Kong central bank raises rate, HSBC and Standard Chartered follow"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fhong-kong-central-bank-raises-rate-hsbc-and-standard-chartered-follow%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1652409&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p> (Corrects third paragraph to show change takes effect on Sept. 23, not Sept. 26)<\/p>\n<p>HONG KONG (Reuters) \u2013     Hong Kong on Thursday raised its base rate by 75 basis points (bps) to 3.5%, prompting the largest commercial banks operating in the territory, including HSBC, to increase their best lending rates.<\/p>\n<p>HSBC was the first bank in Hong Kong to announce it was raising its best lending rate by 12.5 basis points (bps) to 5.125% from 5.0%, effective Sept. 23, its first rate hike since September 2018. <\/p>\n<p>It was followed by Standard Chartered, which raised its best lending rate by the same amount to 5.375%, starting Sept. 23. <\/p>\n<p>\u201cAnticipation around a potential prime rate increase in Hong Kong has been ripe and today\u2019s announcement marks the beginning of an upward cycle,\u201d Luanne Lim, HSBC\u2019s chief executive for Hong Kong, said in a statement.<\/p>\n<p>Hong Kong\u2019s monetary policy moves in lock-step with the United States as the city\u2019s currency is pegged to the greenback in a tight range of 7.75-7.85 per dollar.<\/p>\n<p>However, commercial lenders have appeared reluctant to follow the increase in the base rate \u2013 which has reached the highest level since October 2008 \u2013 too closely.<\/p>\n<p>Banks are seen factoring in two more expected interest rate hikes by the U.S. Fed before year-end, said Kelvin Lau, senior Economist for Greater China at Standard Chartered.<\/p>\n<p>They are weighing between adjusting at one go and testing the water before another window in November and December to further adjust and narrow the gap, Lau added.<\/p>\n<p>The widening spread between HK dollar and US dollar short-term interest rates \u201cwill incentify market participants to conduct further carry trade,\u201d said Eddie Yue, chief executive of Hong Kong Monetary Authority on Thursday.<\/p>\n<p>The move will result in triggering the weak side of the convertibility undertaking again, he said.  <\/p>\n<p>Yue advised the public to be prepared for banks to increase interest rates and to manage risks of borrowing activities. <\/p>\n<p>Meanwhile, Hong Kong\u2019s financial chief reassured the public that he doesn\u2019t see a sharp risk to the city\u2019s real estate market nor a need to adjust property control measures.<\/p>\n<p>Any impact on bank\u2019s asset quality was also limited, according to HKMA\u2019s Yue.<\/p>\n<p>\u201cThe latest rate on bad debt is about 1% and may adjust upward a little bit. But it is still low as compared to some international levels,\u201d he said. <\/p>\n<p>The U.S. Fed delivered its third straight rate increase of 75 bps on Wednesday and signalled borrowing costs would keep rising, underscoring the U.S. central bank\u2019s resolve not to let up in its battle to contain inflation.<\/p>\n<p>(Corrects third paragraph to show change takes effect on Sept. 23, not Sept. 26)<\/p>\n<p> (Reporting by Donny Kwok and Selena Li; Editing by Christian Schmollinger, Himani Sarkar and Kim Coghill)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/hong-kong-central-bank\/file-photo-an-attendant-walks-outside-the-entrance-to-hong\/\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/09\/tagreuters.com2022binary_LYNXMPEI8K148-BASEIMAGE.jpg\" alt=\"tagreuters.com2022binary_LYNXMPEI8K148-BASEIMAGE\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Corrects third paragraph to show change takes effect on Sept. 23, not Sept. 26) HONG KONG (Reuters) \u2013 Hong Kong on Thursday raised its base rate by 75 basis<\/p>\n","protected":false},"author":66,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1652409","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1652409","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1652409"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1652409\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1652409"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1652409"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1652409"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}