The one-month Hong Kong interbank offered rate hit 2.45% yesterday, a 32-month high, ahead of expectations of another 0.75 percentage point hike from the US Federal Reserve tomorrow.

The benchmark mortgage-linked index has risen for seven straight days, the most since Dec. 31, 2019.

Fed officials are expected to raise interest rates by three-quarters of a point for the third consecutive time at the end of their two-day meeting, while economists expect the Fed to hold its key rate steady for an extended period.

The Hong Kong Monetary Authority is expected to raise its key rate by the same amount on Thursday, following in the footsteps of the Fed since the Hong Kong dollar is pegged to the US currency.

It came as more of the city’s banks raised deposit rates to attract capital from retail customers to offset soaring borrowing costs in the interbank market amid expectations. aggressive rate hikes.

CMB Wing Lung Bank said it was offering up to 3.05% for term deposits of at least HK$10,000 over 12 months, but the app was only available yesterday.

The maximum deposit can be up to HK$10 million, the lender added.

Bank Livi, a virtual bank backed by Bank of China (Hong Kong), also said it would pay up to 3% for four-month deposits of at least HK$200,000.

Last week, the Bank of China (Hong Kong) raised its 12-month term deposit rate to 2.7%, close to the highest rate of 2.8% offered by Standard Chartered Hong Kong.

The Bank of China (Hong Kong) also raised its three-month rate to 1.8% and its six-month rate to 2.5% on a minimum deposit of HK$10,000.

With the increases, the bank’s rates are overtaking the Hongkong and Shanghai Banking Corporation, whose 12-month term deposit rate is 2.2%.

The moves came as the composite interest rate, a measure of banks’ average cost of funds, rose 17 basis points to 0.75% in late August, the HKMA said.

Meanwhile, the mReferral Mortgage Rate Index, which reflects the average level of mortgage rates for homebuyers, rose 32 basis points to 2.26% in July, a 27-month high, it said. mortgage consultant mReferral Mortgage Brokerage Services.

Eric Tso, senior vice president of mReferral, said the mortgage rate for new home buyers will rise further as HIBOR is on an upward trend and most banks in the city have already raised the lending cap. related to HIBOR.

[email protected]

Previous

Federal government spent 12.43 billion naira to secure oil pipelines in six months

Next

The Federal Republic of Germany presents its congratulations on independence to the government and people of Saint Kitts and Nevis

Check Also