This came after Hong Kong Monetary Authority, the city’s de factor central bank, lowered its base rate by 25 basis points, in a lock-step with the US Federal Reserve.
Among the commercial lenders, HSBC was the first to announce the change, noting that its best lending rate will be reduced to 5.125 percent.
In a statement, HSBC’s Chief Executive Officer for Hong Kong, Luanne Lim, believed the “adjustments are appropriate” – based on the US rate decisions and the local market conditions.
“Including this reduction, HSBC has lowered its Hong Kong dollar best lending rate by 75 basis points this rate cut cycle since September 2024,” she said.
Lim added the bank would continue to monitor the changes in the local and external economies, while adopting “an agile approach” when considering future rate decisions.
Separately, Bank of China (Hong Kong) noted that its prime lending rate would also stand at 5.125 percent following the reduction, but that the new rate would take effect from Monday.
As for Standard Chartered, its best lending rate will stand at 5.375 percent — effective on Monday.
All three lenders also announced they would lower the interest rate for their Hong Kong dollar savings deposits by 12.5 basis points.
In the case of HSBC, while the annual interest rate for its accounts with a balance of HK$5,000 or above will stand at 0.125 percent, those for accounts with a balance of less than HK$5,000 remains at zero.
