HSBC, BOC, StanChart Keep Best Lending Rate at 5% After Fed's First Hike Since 2023
HK01 · 6 SOURCES1 day ago5 MIN
Summary
HSBC Hong Kong, Bank of China Hong Kong, and Standard Chartered Hong Kong all announced on September 17, 2026, that they will maintain their best lending rates unchanged, choosing not to follow the US Federal Reserve's first interest rate increase since July 2023. The three note-issuing banks kept their best lending rates at 5% to 5.25%, providing stability for mortgage borrowers amid global rate uncertainty. Meanwhile, HSBC will raise its USD savings rate by 12.4 basis points from September 18, reflecting the impact of US monetary policy tightening.
Key Points
- HSBC's best lending rate stays at 5% after the last adjustment on October 31, 2025, when it was cut by 0.125 percentage points
- Bank of China Hong Kong also kept its best lending rate at 5% and demand savings rate at 0.001%
- Standard Chartered maintained its best lending rate unchanged at 5.25% and HKD savings rate unchanged
- HSBC will raise USD savings account rate by 12.4 basis points to 0.125% from September 18, 2026
- HKMA raised base rate by 0.25% to 4.25% following the Fed's decision
- HKMA Chief Executive Eddie Ng (余偉文) warned that widening HK-US interest rate differentials could cause HKD to gradually weaken
- One-month HIBOR reported at 2.9%, expected to challenge 3% level soon
- Mortgage cap rate remains at 3.25%, with industry analyst expecting HIBOR-linked mortgage borrowers to pay at cap rate for the rest of 2026
Why It Matters
The decision by Hong Kong's three largest banks to keep lending rates steady provides reassurance for mortgage borrowers, though experts caution that US rate hike uncertainty remains and advise homeowners to maintain prudent long-term financial plans . The HKMA's warning about HKD weakness from carry trades signals potential future pressures on Hong Kong's linked exchange rate system as interest rate differentials widen .
The decision by Hong Kong's three largest banks to keep lending rates steady provides reassurance for mortgage borrowers, though experts caution that US rate hike uncertainty remains and advise homeowners to maintain prudent long-term financial plans . The HKMA's warning about HKD weakness from carry trades signals potential future pressures on Hong Kong's linked exchange rate system as interest rate differentials widen .