Interest Rates

HSBC launches cheapest fixed mortgage

HSBC has unveiled a new fixed-rate mortgage for residential homebuyers at a rate of 4.5 per cent for home loans of more than $1 million - the lowest in the market.

Thursday, 15 September, 2005, 12:00am

Fixed-rate mortgages are looking less attractive

The flatness of the yield curve for longer dated products will make Hong Kong banks even more reluctant to offer them

In July last year, I urged potential homeowners to lock in to a fixed-rate mortgage for as long as possible because the United States Federal Reserve had started raising interest rates a month earlier.

14 Sep 2005 - 12:00am

Smaller lenders on shaky foundations of home loans

Those who would like to see the future of smaller banks laid bare - not the least long-term investors who may welcome some assurance about earnings outlooks - will not need to throw bones, recite incantations or pore over chicken entrails.

11 Aug 2005 - 12:00am

Prime lending rates head for 7.25pc

Banks shrug off impact on property as Fed rises set agenda

Hong Kong lenders are likely to match an expected move by the United States Federal Reserve to raise its Fed funds rate by another 0.25 per cent tonight, raising their prime lending rates by the same margin, to 6.75 per cent, bankers said.

9 Aug 2005 - 12:00am

Shareholders can put bubbly on hold

Lending rates and discounts on mortgage loans have at last parted company, the former inching upwards after a seven-year slide into the red in real, inflation-adjusted terms, and the latter heading downwards as the price war between banks for home loans slides into an uneasy truce.

21 Jul 2005 - 12:00am

Interest-rate environment seen returning to normal

The difference in the pace of interest-rate increases between Hong Kong and the United States is only temporary and will return to normal eventually, according to Hong Kong Monetary Authority chief executive Joseph Yam Chi-kwong.

6 Jul 2005 - 12:00am

Homebuyers to feel rates heat

Surprise rise of 50 basis points in lending costs to hit property and consumption

Hong Kong is bracing for a long, hot summer of higher interest rates that could take the steam out of the property market and have knock-on effects on domestic consumption.

5 Jul 2005 - 12:00am

Hibor edges up on US concerns

The short-term Hong Kong interbank offered rate (Hibor) continued to edge higher yesterday as market traders waited for the outcome of the latest Federal Open Market Committee meeting in the United States early today.

1 Jul 2005 - 12:00am

Banks pay the price for cheap mortgages

Mortgages issued at ultra-low rates at the beginning of the year have turned into money-losers for banks, which are now paying top dollar for funds borrowed on the interbank market.

15 Jun 2005 - 12:00am

Increases in prime rates forecast to outstrip those in US

Prime rates in Hong Kong may rise a further 100 basis points by the end of the year, exceeding the expected increases in the United States best lending rate, an economist said yesterday.

8 Jun 2005 - 12:00am

Claims of rate-rise cycle are rejected

Central bank boss says scenario does not apply to China

The central bank chief has rejected suggestions the mainland has entered a cycle of rising interest rates, saying the central bank would not raise them without good cause.

30 Mar 2005 - 12:00am

Beware of loans leap, borrowers told

Rates might surge when banks close gap with US, Monetary Authority chief warns

Borrowers were yesterday warned to be on their guard against a sudden surge in interest rates.

5 Feb 2005 - 12:00am

BOC holds fire on rate cuts as others follow big three

Finance chief urges investor caution, saying mortgage reductions are small

Bank of China (Hong Kong) left its interest rates unchanged yesterday saying it would 'closely monitor the market situation', while most of its big rivals cut their rates.

'We will re-evaluate our interest rates as and when required,' a spokesman said.

13 Nov 2004 - 12:00am

Higher borrowing costs inevitable as negative real rates return

TODAY IS ONE of those days when I half regret telling the boss that I would limit myself to no more than two charts in a column. If I had my way I would make it all charts today with only handwritten blurbs inside them to highlight trends in local interest rates.

22 Sep 2004 - 12:00am

First rate rise in four years expected

Banks are likely to follow the US lead, but the impact on the property market and economy will be mild, analysts say

Hong Kong banks are expected to raise interest rates for the first time in four years after an expected increase tonight by the United States Federal Reserve, senior industry executives said yesterday.

10 Aug 2004 - 12:00am