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HSBC to raise prime lending rate to 5.875% after Hong Kong rate hike

Published 07/27/2023, 12:29 AM
Updated 07/27/2023, 03:02 AM
© Reuters. FILE PHOTO: A logo of HSBC is seen on its headquarters at the financial Central district in Hong Kong, China August 4, 2020. REUTERS/Tyrone Siu//File Photo
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HONG KONG (Reuters) -HSBC Holdings (LON:HSBA) said on Thursday it is raising its best lending rate in Hong Kong by 12.5 basis points to 5.875% effective on July 28 after the city's de facto central bank raised the base rate.

© Reuters. FILE PHOTO: A logo of HSBC is seen on its headquarters at the financial Central district in Hong Kong, China August 4, 2020. REUTERS/Tyrone Siu//File Photo

HSBC also said it would raise the savings rate for its U.S. dollar savings deposits by 12.5 basis points to 1.0% per annum from 0.875% effective on Friday.

The Hong Kong Monetary Authority (HKMA) earlier on Thursday raised its base rate charged through the overnight discount window by 25 basis points to 5.75%, the highest in 16 years, hours after the U.S. Federal Reserve delivered a rate hike of the same margin.

 

 

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