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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.
Stephen Miran became one of the US Federal Reserve’s most vocal doves during his short tenure on the central bank’s board of governors. Photo: AP
Banking & finance

Stephen Miran, Trump’s economic guru, is leaving the Fed. What happens now?

Miran quit his job as a Trump economic adviser to join the US Federal Reserve board, where he became known as a vocal dove.

United States

Warsh confirmed as Fed chair, as US central bank faces Trump assault

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United States

US Senate confirms Trump pick Kevin Warsh to Federal Reserve Board

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China trade

Pakistan to tap China debt market with first sale of yuan-priced ‘panda bonds’

Islamabad turns to ‘panda bonds’ to secure cheaper credit and diversify its borrowing into yuan-denominated funding, with a focus on sustainable development.

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Pakistan and China continue to forge stronger economic ties. Here, a family rides past a roadside display in the shape of their national flags in Lahore, Pakistan, ahead of a visit by Vice-Premier He Lifeng in 2023 to mark the 10th anniversary of a mega economic plan. Photo: AFP
Banking & finance

Trump’s pick for Fed chair says he’ll stay independent. Does he mean it?

Kevin Warsh said at a confirmation hearing he would not become the US president’s ‘human sock puppet’, but concerns over interference persist.

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Hong Kong property

Hong Kong home sales surge to 2-year high, boosting overall transactions

A total of 8,692 transactions in all sectors were concluded last month, up 12.3 per cent from March’s 7,737 deals.

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United States

US economy grows 2% in January–March; Iran war clouds outlook

The economy also recovered from last autumn’s 43-day federal shutdown.

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A shopper with a shopping trolley in Centennial, Colorado in the US. Photo: AP
Banking & finance

Standard Chartered’s 19% first-quarter profit jump beats estimates

Wealth management gains support earnings, but margin pressure from lower rates and rising credit costs weigh on overall performance.

Mainland China

HKMA warns of interest-rate uncertainty as Fed’s trajectory remains unclear

HSBC, Standard Chartered and Bank of China (Hong Kong) keep their prime and savings rates unchanged.

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United States

Powell says he’ll stay at Fed as governor, defying Trump

Outgoing chair triggers fresh clash with the White House by exercising his right to remain on the Fed board.

US Federal Reserve Chair Jerome Powell following his final press conference. Photo: Reuters
Hong Kong property

Hong Kong home prices rise to 28-month high as buyers shrug off war fears

Prices of the city’s residential property rose by 1.4 per cent, showing strong resilience despite economic turbulence caused by the Iran war.

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As a thick fog gathered over Yuen Long, Hong Kong’s property prices rose by 1.4 per cent in the first quarter of 2026 and rents grew for the fifth month in a row. Photo: Eugene Lee
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.

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Japan

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

The wrong kind of inflation and the effects of the war in Iran complicate the outlook for Japanese interest rates.

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United States

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

The remarks were made at a contentious confirmation hearing, which took place amid a criminal probe of current chair Jerome Powell.

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Kevin Warsh, US President Donald Trump’s nominee for Chair of the Federal Reserve, testifies in Washington on Tuesday. Photo: AFP
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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