Advertisement
Advertisement
TOPIC

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.
Flats in La Mirabelle are priced between HK$5.93 million and HK$8.99 million. Photo: Handout
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.

Hong Kong property

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

Central banks

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

videocam
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.

La Mirabelle in Harbour Bay is to be developed in two phases, each comprising about 1,200 units, for a total of 2,550 units. Photo: Handouit
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.

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.

Advertisement
Advertisement
Advertisement
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.

A real estate agent points to the view from a property in Niseko, Japan, on February 20. Photo: AFP
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.

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.

Federal Reserve Chair Jerome Powell speaks during a news conference in Washington on Wednesday. Photo: AP
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.

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.

videocam
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.

Former US Federal Reserve Governor Kevin Warsh speaks during a monetary policy conference at Stanford University’s Hoover Institution in Palo Alto, California, May 9, 2025. Photo: Reuters
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.

Illustration: Henry Wong
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.

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.

Advertisement
Advertisement
Advertisement
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.

Aerial view of residential buildings in Tseung Kwan O. Photo: Sam Tsang
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.

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.

videocam
Japan’s Prime Minister Sanae Takaichi, (left) gestures as US President Donald Trump delivers a speech in front of US Navy personnel at the US naval base in Yokosuka, Japan, on October 28, 2025. Photo: AFP
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.

Japan

Macroscope | Could Japan stop being the ballast of the bond market?

A lower house election victory would give flight to Prime Minister Takaichi’s fiscal expansionism – and introduce upheaval far beyond Japan.

United States

Trump picks former Federal Reserve official Kevin Warsh to chair US central bank

The nomination comes as economic issues – from tariffs to affordability – dominate the policy agenda ahead of the November midterm elections.

videocam
Kevin Warsh is a former governor of the Federal Reserve Board. Photo: AP
US Federal Reserve

Before Trump’s Fed pick, a new clear favourite emerges for chair

Betting markets show shiny odds for a former governor, with a prominent asset manager trailing a distant second as the announcement looms.

Who will replace Jerome Powell as the next chair of the US Federal Reserve? Photo: Reuters
Banking & finance

Hong Kong regains lustre as stocks rally, property picks up

A booming IPO market, lower interest rates and the return of overseas visitors are boosting Hong Kong’s economy, stock market and Exchange Fund.

Banking & finance

HKMA warns of risks as Hong Kong follows Fed in keeping interest rate unchanged

Analysts see the first US rate cut in June, with a falling Hong Kong interbank rate set to bring relief to borrowers.

Advertisement
Advertisement
Advertisement
Help preserve 120 years of quality journalism.
SUPPORT NOW
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement