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

United States

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

United States

Trump administration urges judge to revisit ruling blocking Powell subpoenas

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.

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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.

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.

A shopper looks at vegetables in a grocery store in Schaumburg, Illinois, on Monday. Photo: AP
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.

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.

The latest Sierra Sea offering includes 244 two-bedroom and 106 three-bedroom units. Photo: Edmond So
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.

Japan’s 10-year government bond yield, seen on a screen outside a brokerage in Tokyo on January 21, touched its highest in a century this month. Photo: Reuters
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.

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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.

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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.

Photo: Google Maps
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.

United States

US Federal Reserve holds interest rates steady, defying Trump pressure

The US president had been pushing for cuts at the central bank’s first policy gathering this year.

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Hong Kong property

Hong Kong home prices snap 3-year downturn as rents surge to a new high

The property market has turned a corner, buoyed by rate cuts, stock gains and talent schemes, analysts say.

The property market turnaround has set the tone for a broader rebound this year, analysts say. Photo: Sam Tsang
Bonds

Spiking yen fuels risk-averse mood as investors take defensive stance

Yen hits two-month high amid fears US and Japan will intervene to prop up the currency ahead of Japan’s election next month.

Media reports on Friday said that the New York Federal Reserve had checked dollar-yen rates with dealers, widely seen as a precursor to intervention. Photo: Reuters
Hong Kong Monetary Authority (HKMA)

How lower US interest rates can help Hongkongers amid steady local prime rates

Most new mortgages, many corporate loans are based on interbank rates, which will continue to fall, monetary authority’s deputy chief says.

Hong Kong property

All signs point to rebound in Hong Kong’s housing market: Morgan Stanley analyst

A combination of factors – falling interest rates, rising rents and stamp duty removal – bodes well for the market after years of downturn.

Bonds

Japan bond volatility raises contagion alarm for Asia’s stocks and debt

Japan’s yield spike is testing safe-haven assumptions, with markets debating whether the movement is local or systemic.

A monitor displays long-term interest rates in Tokyo, Japan, on January 19, 2026. Photo: EPA
Hong Kong property

Hong Kong’s housing market gets a vote of confidence from major banks

Most financial institutions forecast price gains ranging from 5 to 10 per cent, supported by supply constraints and end-user demand.

A night view of Hong Kong Island and Kowloon from The Peak. Property prices in the city are expected to trend upwards this year. Photo: Sam Tsang
Donald Trump

Trump-Powell conflict over Fed escalates with threat of criminal indictment

Jerome Powell calls legal threats against him pretexts to pressure the US Fed over policy.

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Hong Kong property

Hong Kong’s SHKP continues sell-out streak at Sierra Sea

Homebuyers snap up all 213 new flats on sale at Sierra Sea’s Phase 2A as of 9pm on Saturday.

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