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Interest rates

Interest rates
An interest rate is the amount charged by banks to borrowers for any loan, which is a percentage of the principal. It is an important monetary tool for central banks to control inflation and boost economic growth. The Hong Kong Monetary Authority maintains its official base rate in lockstep with the US Federal Reserve because the Hong Kong dollar has been pegged with the US currency since 1983. Hong Kong commercial banks can decide when to change their prime lending rate and deposit rate, which may differ in terms of timing and margin of change.
Elderly people rest at a park in Fuyang in eastern China’s Anhui province on September 13, 2024. Photo: AFP
China birth rate

In China, a France-sized population loss begins to test coastal powerhouses

Rising pension burdens and social security subsidies are also straining public finances – though trends remain uneven, analysts say.

Japan

Macroscope | Why fixing Japan’s monetary policy isn’t getting any easier

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United States

Trump’s pick for Fed chief, calls for ‘regime change’ at US central bank

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Global monetary policy

Editorial | Chinese yuan slowly but surely cutting into US dollar dominance

Kazakhstan’s issuance of yuan-denominated debt shows developing nations can use ‘panda bonds’ as stepping stones into global capital markets.

An employee counts 100-yuan notes at a bank in Beijing on November 14, 2024. Photo: AFP
Hong Kong property

Hong Kong homebuyers extend sell-out streak amid renewed confidence in market

Sentiment is likely to stay firm, agents say, citing steady demand across new launches and a rebound that lifted prices to a 22-month high.

Hong Kong property

Brisk flat sales at Hong Kong project as buyers unfazed by potential rate hikes

Flats at La Mirabelle in Tseung Kwan O range from 360 sq ft to 558 sq ft and with layouts of one to two bedrooms.

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Hong Kong property

Hong Kong developers test homebuyers with price increases after sell-outs

‘This is a classic recovery-phase strategy: testing price elasticity without undermining the building momentum,’ an analyst says.

The Chester has 241 flats with layouts from one to four bedrooms. Photo: Handout
Central banks

Macroscope | Asian central banks largely powerless in face of Iran war energy shock

Central banks cannot pump oil into the global economy in the same way they can flood the financial system with liquidity.

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Hong Kong property

La Mirabelle sells in hours as developers ramp up sales, buyers fret over rates

All 254 Tseung Kwan O flats snapped up as developers step up supply and demand stays firm.

Hong Kong property

Hong Kong developers test market with 222 units released amid rate uncertainty

So far this year, 5,500 new residential units have been sold in Hong Kong, a 25 per cent increase compared to the same period last year.

An aerial view of the Kowloon district of Hong Kong. Photo: Sam Tsang
Hong Kong property

Hong Kong home prices surge to 22-month high, but Iran war clouds outlook

Price gains accelerated in February, according to official government index, but interest-rate risk looms, analysts say.

A view of a residential area in Sham Shui Po on May 28, 2025. Photo: Eugene Lee
Asia housing and property

The View | War-induced interest rate shocks unlikely to upset Asia’s property markets

While monetary tightening would add to affordability pressures, it would have little bearing on the forces driving up prices and rents.

Hong Kong property

Will a longer pause in rate cuts threaten Hong Kong’s property upturn?

A wait-and-see approach by Hong Kong homebuyers amid rising geopolitical uncertainties could dampen recovery in the sector.

Commodities

Gold slides as hawkish Fed and strong US dollar override geopolitical fears

Market watchers point to fading hopes of interest rate cuts and oil-driven inflation concerns as key drivers of the decline.

A modest rebound driven by technical buying on Friday did little to alter the broader downtrend, with gold prices hovering around the US$4,500 level. Photo: DPA
Hong Kong Monetary Authority (HKMA)

HKMA warns of interest rate uncertainty amid Middle East conflict

HKMA leaves city’s base rate untouched at 4 per cent, as HSBC, Standard Chartered and BOCHK keep prime lending and saving rates unchanged.

The Hong Kong Monetary Authority maintained the city’s base rate at 4 per cent on Thursday. Photo: Jonathan Wong
United States

US Fed defies Trump to keep interest rates unchanged amid Iran war concerns

Spiking oil prices could fuel inflation and curb growth, even as the US president repeatedly calls for rate cuts.

United States

Trump administration urges judge to revisit ruling blocking Powell subpoenas

A federal judge had ruled on Friday that a DOJ investigation into Powell was intended to pressure the Fed chairman to lower interest ‌rates.

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United States

Judge quashes subpoenas of Fed chair, says probe was ‘politically motivated’

A ‘mountain of evidence’ suggests the subpoenas were to pressure Jerome Powell to obey Trump’s demands to cut interest rates, the judge says.

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US Federal Reserve Chair Jerome Powell speaks during a press conference in Washington in January. Photo: Reuters
China stock market

Trump’s Fed pick Warsh stokes uncertainty as investors weigh his policy shifts

US Treasuries have been falling recently, partially reflecting investor concerns that Warsh’s succession will slow rate reductions.

Hong Kong property

Hong Kong, Sydney or Dubai? Prime real estate investors take their pick

Rich buyers are reshaping ultra-luxury property markets from Sydney and Hong Kong to Dubai, drawn by each city’s unique selling proposition.

Hong Kong property

Hong Kong developer Sino Land posts steady profit amid market improvements

Chairman Daryl Ng highlights the city’s encouraging property sales performance in the second half of 2025.

Sino Group has two new residential projects in the pipeline: one in Tseung Kwan O and another in To Kwa Wan. Photo: Shutterstock
Banking & finance

HSBC to boost spending in Hong Kong, other high-growth markets to US$1.8 billion

HSBC reported a 7 per cent profit drop, but shares rose on its CEO’s comments on higher return goals, steady dividends and new growth plans.

HSBC Holdings is the largest banking group in Europe and Hong Kong by assets. Photo: Reuters
Hong Kong property

Hong Kong home sales head for 22-year high as developers test price resilience

Deep discounts that were offered by developers to reduce unsold inventory may be a thing of the past, analysts say.

United States

US inflation cools more than expected, kindling hopes of Fed rate cut

The consumer price index rose 2.4 per cent year-on-year, the lowest level since May, though affordability concerns still weigh on households.

Singapore

Singapore wage growth outpaced inflation for most in 2025, PM says

Singapore’s definition of household income now includes income from non-work sources, including rental and investment income.

Office workers walk through the financial district of Singapore, in February 2021. Photo: EPA-EFE
Hong Kong property

How Hong Kong’s headquarters economy fuels rebound in commercial property

The headquarters economy is powering office and retail recovery, with rising demand, stabilising rents and renewed investor confidence.

The city’s office market showed signs of stability in 2025. Photo: SCMP
Banking & finance

Macroscope | Trump-Takaichi meddling in finance spells more turbulence ahead

The two leaders’ moves into economics despite their lack of knowledge threaten to further destabilise global finance and inflate debt levels.

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Hong Kong property

SHKP posts another Sierra Sea sell-out as Hong Kong property rebound strengthens

Fifth consecutive sell-out at Sai Sha development shows recovery gathering pace, with analysts forecasting further price increases ahead.

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