Hong Kong banks stand pat as HKMA tightens interest rates in line with the Fed
Hong Kong savers left wanting after local banks hold interest rates on savings accounts unchanged
Hong Kong banks kept their interest rates unchanged on Thursday, disappointing savers who had been hoping that local institutions would break from the near-zero rates on offer after the Hong Kong Monetary Authority unveiled its third increase in the base rate in seven months.
HSBC kept its interest rate for Hong Kong dollar savings accounts unchanged at 0.001 per cent, while the Bank of China Hong Kong and Hang Seng Bank maintained their rates at 0.01 per cent.
The HKMA, Hong Kong’s de facto central bank, increased the base rate by 0.25 percentage point to 1.5 per cent on Thursday morning, tracking the overnight move by the US Federal Reserve.
However, Hong Kong banks did not adjust the rates they offered to either savers or borrowers.
Market watchers said they did not expect local banks to make any change to the interest rate regime this year, owing to excess capital held on deposit.
