HSBC to raise HK Dollar Best Lending Rate by 12.5 bps from 23rd September

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22nd September 2022 – (Hong Kong) HSBC announced that, starting from 23rd September, the Hong Kong Dollar Best Lending Rate will be raised by 12.5 bps, from 5% to 5.125% per annum. At the same time, HSBC lifted the interest rate on Hong Kong Dollar savings accounts by 12.4 bps. HSBC last adjusted the Hong Kong Dollar savings accounts interest rate on 1st November, 2019, when the interest rate was cut by 12.4 basis points. After the deposit rate hike, the HSBC Hong Kong Dollar savings accounts rate above HK$5,000 will be 0.125%. In addition, HSBC will maintain an additional annual interest rate of 0.001% for the total wealth management value of HK$1 million and above.

Kelly Lam chief executive of HSBC Hong Kong, said that the market has generally expected that the Hong Kong dollar prime rate will be raised, and today's announcement marks the beginning of the interest rate hike cycle in Hong Kong. Regarding the magnitude of this interest rate adjustment, careful consideration has been given to a number of factors, including the macroeconomic environment, the trend of Hong Kong dollar interest rates, and the impact on the local economy and society. Given that the U.S. inflation rate remains high and the market expects that the U.S. interest rate hike cycle is not over yet, HSBC will continue to review the external economic situation and Hong Kong's economic outlook, and will adjust the Hong Kong Dollar interest rate again if necessary.

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