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Interest rates

Interest rates
An interest rate is the amount charged by banks to borrowers for any loan, which is a percentage of the principal. It is an important monetary tool for central banks to control inflation and boost economic growth. The Hong Kong Monetary Authority maintains its official base rate in lockstep with the US Federal Reserve because the Hong Kong dollar has been pegged with the US currency since 1983. Hong Kong commercial banks can decide when to change their prime lending rate and deposit rate, which may differ in terms of timing and margin of change.
US dollar and Chinese yuan notes are seen with national flags in the backdrop. Photo: Reuters
Yuan

For a yuan in deeper markets, Fed ex-head cites dollar playbook, flags risks

Meanwhile, surging costs are ‘likely to hit US inflation data a bit harder and perhaps longer’ than expected, according to the former central bank official.

Hong Kong property

Hong Kong home prices reach 30-month high, while rents set another record

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United States

Warsh takes US Fed’s helm with inflation dilemma already unfolding

Bonds

Macroscope | Bond market sell-off raises stakes for Asia’s tech-driven economies

Stakes are high for Asia’s tech-driven economies amid a global sell-off in bond markets that signals investor fears.

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A currency trader talks on the phone near a screen showing the Korea Composite Stock Price Index and the foreign exchange rate between the US dollar and South Korean won at the foreign exchange dealing room of the Hana Bank headquarters in Seoul on May 20. Photo: AP
Hong Kong property

Buyers flock to SHKP project in New Territories as home market outlook brightens

SHKP generated more than HK$1 billion after the sale of the 154 flats at Lime Spark last week.

Banking & finance

Stephen Miran, Trump’s economic guru, is leaving the Fed. What happens now?

Miran quit his job as a Trump economic adviser to join the US Federal Reserve board, where he became known as a vocal dove.

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United States

Warsh confirmed as Fed chair, as US central bank faces Trump assault

He is taking over as the world’s largest economy reels from repeated shocks, including inflation fuelled in part by the Iran war.

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Kevin Warsh testifies during a Senate Banking Committee hearing on his nomination on Capitol Hill in April. Photo: AFP
United States

US Senate confirms Trump pick Kevin Warsh to Federal Reserve Board

The decision clears the way for Warsh to take over the role of Fed chair from Jerome Powell later this week.

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China trade

Pakistan to tap China debt market with first sale of yuan-priced ‘panda bonds’

Islamabad turns to ‘panda bonds’ to secure cheaper credit and diversify its borrowing into yuan-denominated funding, with a focus on sustainable development.

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Banking & finance

Trump’s pick for Fed chair says he’ll stay independent. Does he mean it?

Kevin Warsh said at a confirmation hearing he would not become the US president’s ‘human sock puppet’, but concerns over interference persist.

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Illustration: Henry Wong
Hong Kong property

Hong Kong home sales surge to 2-year high, boosting overall transactions

A total of 8,692 transactions in all sectors were concluded last month, up 12.3 per cent from March’s 7,737 deals.

An aerial view of housing in Tseung Kwan O, February 12, 2026. Photo: Sam Tsang
United States

US economy grows 2% in January–March; Iran war clouds outlook

The economy also recovered from last autumn’s 43-day federal shutdown.

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Banking & finance

Standard Chartered’s 19% first-quarter profit jump beats estimates

Wealth management gains support earnings, but margin pressure from lower rates and rising credit costs weigh on overall performance.

Mainland China

HKMA warns of interest-rate uncertainty as Fed’s trajectory remains unclear

HSBC, Standard Chartered and Bank of China (Hong Kong) keep their prime and savings rates unchanged.

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The Hong Kong Monetary Authority maintained the city’s base rate at 4 per cent on Thursday. Photo: Jonathan Wong
United States

Powell says he’ll stay at Fed as governor, defying Trump

Outgoing chair triggers fresh clash with the White House by exercising his right to remain on the Fed board.

US Federal Reserve Chair Jerome Powell following his final press conference. Photo: Reuters
Hong Kong property

Hong Kong home prices rise to 28-month high as buyers shrug off war fears

Prices of the city’s residential property rose by 1.4 per cent, showing strong resilience despite economic turbulence caused by the Iran war.

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China birth rate

In China, a France-sized population loss begins to test coastal powerhouses

Rising pension burdens and social security subsidies are also straining public finances – though trends remain uneven, analysts say.

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Japan

Macroscope | Why fixing Japan’s monetary policy isn’t getting any easier

The wrong kind of inflation and the effects of the war in Iran complicate the outlook for Japanese interest rates.

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Customers queue at a discount ticket shop at Akihabara Electric Town in Tokyo on March 24. The weak yen is fuelling inflation by increasing the cost of imported goods, sapping consumers’ purchasing power and making it harder to tackle Japan’s cost-of-living crisis. Photo: EPA
United States

Trump’s pick for Fed chief, calls for ‘regime change’ at US central bank

The remarks were made at a contentious confirmation hearing, which took place amid a criminal probe of current chair Jerome Powell.

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Global monetary policy

Editorial | Chinese yuan slowly but surely cutting into US dollar dominance

Kazakhstan’s issuance of yuan-denominated debt shows developing nations can use ‘panda bonds’ as stepping stones into global capital markets.

Hong Kong property

Hong Kong homebuyers extend sell-out streak amid renewed confidence in market

Sentiment is likely to stay firm, agents say, citing steady demand across new launches and a rebound that lifted prices to a 22-month high.

Prospective buyers queue at the sales office for Pavilia Farm III flats. Photo: Jelly Tse
Hong Kong property

Brisk flat sales at Hong Kong project as buyers unfazed by potential rate hikes

Flats at La Mirabelle in Tseung Kwan O range from 360 sq ft to 558 sq ft and with layouts of one to two bedrooms.

Flats in La Mirabelle are priced between HK$5.93 million and HK$8.99 million. Photo: Handout
Hong Kong property

Hong Kong developers test homebuyers with price increases after sell-outs

‘This is a classic recovery-phase strategy: testing price elasticity without undermining the building momentum,’ an analyst says.

Central banks

Macroscope | Asian central banks largely powerless in face of Iran war energy shock

Central banks cannot pump oil into the global economy in the same way they can flood the financial system with liquidity.

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Hong Kong property

La Mirabelle sells in hours as developers ramp up sales, buyers fret over rates

All 254 Tseung Kwan O flats snapped up as developers step up supply and demand stays firm.

La Mirabelle in Harbour Bay is to be developed in two phases, each comprising about 1,200 units, for a total of 2,550 units. Photo: Handouit
Hong Kong property

Hong Kong developers test market with 222 units released amid rate uncertainty

So far this year, 5,500 new residential units have been sold in Hong Kong, a 25 per cent increase compared to the same period last year.

An aerial view of the Kowloon district of Hong Kong. Photo: Sam Tsang
Hong Kong property

Hong Kong home prices surge to 22-month high, but Iran war clouds outlook

Price gains accelerated in February, according to official government index, but interest-rate risk looms, analysts say.

Asia housing and property

The View | War-induced interest rate shocks unlikely to upset Asia’s property markets

While monetary tightening would add to affordability pressures, it would have little bearing on the forces driving up prices and rents.

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