The Hong Kong HKMA says that the local banking industry may soon increase the best preferential loan interest rate, which will be the first time that it has raised loan costs since 2018, or further suppress Hong Kong's economic growth.
According to Bloomberg, Yu Weiwen, president of the Hong Kong Monetary Administration, said on Thursday (22nd) that as the Fed continues to raise interest rates sharply, the Hong Kong banking industry "is very likely" to increase deposit interest rates by the end of the year.This is the first time that the Hong Kong Monetary Administration has hinted that the banking industry may increase interest rates.
The Hong Kong HKMA raised the basic interest rate of 75 basis to 3.5%on Thursday, which was consistent with the interest rate hike of the Fed.Hong Kong implements the contact rate system, the Hong Kong dollar is linked to the US dollar, and monetary policy follows the Fed.
Yu Weifeen said that the public should make a good preparation for the Hong Kong Bank's interbank borrowing rate (Hibor).As the Fed continues to raise interest rates, this trend is expected to continue; as for the bank's commercial interest rate, banks will decide the timing and amplitude of interest rates based on their own capital structure and other related factors.
Although the Hong Kong HKMA raised interest rates, HSBC Holdings, Standard Chartered Group and other banks did not follow up the best preferential loan interest rates.However, in August, some banks increased the interest rate of the mortgage loan plan linked to HIBOR in August to increase the interest rate of 25 basis points, and the market was increasingly guessing that the cost of loans may also be increased.
Affected by the restrictions on epidemic prevention and the global economic decline, Hong Kong's economic growth has already slowed down.The Hong Kong government has lowered economic growth expectations this year, and is expected to shrink this year's GDP.
