Mortgage rate rise viewed as a one-off by the market
10 basis point rise last weekend unlikely to deter borrowers, or dampen sky-high property prices
The decision by many of Hong Kong’s largest banks to raise the interest rates they charge on mortgages last weekend is not expected to spark a trend towards further rate rises, market watchers have told South China Morning Post.
“The rises were a response to regulatory tightening measures by the HKMA (Hong Kong Monetary Authority), rather than a change in the market,” said Daniel Shih director for research at property agency Colliers International.
Raymond Yeung, chief economist for greater China at ANZ, agreed the current environment implies rates will remain low.
“The macro conditions continue to favour low interest rates, as there is ample liquidity in the money market,” he said.
While there is plenty of money available for banks to borrow from each other, experts also suggest there is no pressing need to raise interest rates, to attract additional funding.