HSBC Holdings, the British banking giant, has increased its best lending rate in Hong Kong by 12.5 basis points to 5.875% effective July 28 after the Hong Kong Monetary Authority (HKMA) raised the base rate.
The HKMA raised its base rate by 25 basis points to 5.75%, the highest in 16 years, following a similar move by the U.S. Federal Reserve. The rate hike by the Fed was aimed at curbing high inflation.
In response to the base rate increase, HSBC also announced that it will raise the savings rate on its U.S. dollar savings deposits in Hong Kong by 12.5 basis points to 1.0% per annum from 0.875%. The new savings rate will take effect on Friday.
