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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.
A shopper looks at vegetables in a grocery store in Schaumburg, Illinois, on Monday. Photo: AP
United States

US inflation cools more than expected, kindling hopes of Fed rate cut

The consumer price index rose 2.4 per cent year-on-year, the lowest level since May, though affordability concerns still weigh on households.

Singapore

Singapore wage growth outpaced inflation for most in 2025, PM says

Hong Kong property

How Hong Kong’s headquarters economy fuels rebound in commercial property

Banking & finance

Macroscope | Trump-Takaichi meddling in finance spells more turbulence ahead

The two leaders’ moves into economics despite their lack of knowledge threaten to further destabilise global finance and inflate debt levels.

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Japan’s Prime Minister Sanae Takaichi, (left) gestures as US President Donald Trump delivers a speech in front of US Navy personnel at the US naval base in Yokosuka, Japan, on October 28, 2025. Photo: AFP
Hong Kong property

SHKP posts another Sierra Sea sell-out as Hong Kong property rebound strengthens

Fifth consecutive sell-out at Sai Sha development shows recovery gathering pace, with analysts forecasting further price increases ahead.

Japan

Macroscope | Could Japan stop being the ballast of the bond market?

A lower house election victory would give flight to Prime Minister Takaichi’s fiscal expansionism – and introduce upheaval far beyond Japan.

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United States

Trump picks former Federal Reserve official Kevin Warsh to chair US central bank

The nomination comes as economic issues – from tariffs to affordability – dominate the policy agenda ahead of the November midterm elections.

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Kevin Warsh is a former governor of the Federal Reserve Board. Photo: AP
US Federal Reserve

Before Trump’s Fed pick, a new clear favourite emerges for chair

Betting markets show shiny odds for a former governor, with a prominent asset manager trailing a distant second as the announcement looms.

Banking & finance

Hong Kong regains lustre as stocks rally, property picks up

A booming IPO market, lower interest rates and the return of overseas visitors are boosting Hong Kong’s economy, stock market and Exchange Fund.

Banking & finance

HKMA warns of risks as Hong Kong follows Fed in keeping interest rate unchanged

Analysts see the first US rate cut in June, with a falling Hong Kong interbank rate set to bring relief to borrowers.

The Hong Kong Monetary Authority kept its base rate unchanged at 4 per cent on Thursday. Photo: Jonathan Wong
United States

US Federal Reserve holds interest rates steady, defying Trump pressure

The US president had been pushing for cuts at the central bank’s first policy gathering this year.

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A view of the US Federal Reserve building in Washington on Monday. Photo: AFP
Hong Kong property

Hong Kong home prices snap 3-year downturn as rents surge to a new high

The property market has turned a corner, buoyed by rate cuts, stock gains and talent schemes, analysts say.

Bonds

Spiking yen fuels risk-averse mood as investors take defensive stance

Yen hits two-month high amid fears US and Japan will intervene to prop up the currency ahead of Japan’s election next month.

Hong Kong Monetary Authority (HKMA)

How lower US interest rates can help Hongkongers amid steady local prime rates

Most new mortgages, many corporate loans are based on interbank rates, which will continue to fall, monetary authority’s deputy chief says.

A view of residential buildings in front of Lion Rock Hill on April 15, 2025. Photo: Dickson Lee
Hong Kong property

All signs point to rebound in Hong Kong’s housing market: Morgan Stanley analyst

A combination of factors – falling interest rates, rising rents and stamp duty removal – bodes well for the market after years of downturn.

Praveen Choudhary, head of Asia gaming, Hong Kong and India property research at Morgan Stanley, has covered Asian property markets through many boom-and-bust cycles. Photo: Jonathan Wong
Bonds

Japan bond volatility raises contagion alarm for Asia’s stocks and debt

Japan’s yield spike is testing safe-haven assumptions, with markets debating whether the movement is local or systemic.

Hong Kong property

Hong Kong’s housing market gets a vote of confidence from major banks

Most financial institutions forecast price gains ranging from 5 to 10 per cent, supported by supply constraints and end-user demand.

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Donald Trump

Trump-Powell conflict over Fed escalates with threat of criminal indictment

Jerome Powell calls legal threats against him pretexts to pressure the US Fed over policy.

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US President Donald Trump and Federal Reserve Chair Jerome Powell during a tour of the Federal Reserve Board building in Washington DC last year. Photo: Reuters
Hong Kong property

Hong Kong’s SHKP continues sell-out streak at Sierra Sea

Homebuyers snap up all 213 new flats on sale at Sierra Sea’s Phase 2A as of 9pm on Saturday.

Hong Kong property

Hong Kong developers rush new flats as sentiment lifts, pressuring recovery

Wheelock and Kerry plan to roll out more than 4,500 units in 2026, even as analysts warn that inventory overhang may cap price gains.

China inflation

China must take action to avoid Japan-style deflation spiral, scholars warn

Unless Beijing introduces more forceful policies, consumers could get locked into a mindset that is ‘nearly impossible to break’, scholars say.

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New cars are advertised for sale at deep discounts at a showroom in Chengdu, southwest China. Photo: Reuters
Hong Kong Monetary Authority (HKMA)

Hong Kong interbank rates forecast to drop on expected 2026 US monetary easing

Savings rates near zero prevent further prime rate reductions, though Hibor-linked loans will get cheaper, analysts say.

Analysts agree that lower US rates in 2026 would drive down Hibor – benefiting borrowers with Hibor-linked mortgages and corporate loans. Photo: Shutterstock
United States

Opinion | Why Donald Trump will focus on the Fed in 2026

With the US midterm elections looming, the White House seeks victory over inflation and the stimulating effects of lower borrowing costs.

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China property

China housing market gets VAT relief on resales but demand outlook stays subdued

Policy lowering VAT to 3 per cent reduces seller costs but demand recovery is key to stabilising the housing sector, property agents say.

Hong Kong property

Hong Kong’s SHKP nudges up prices on latest Sierra Sea flats on offer

Developer offers 148 units in Phase 2A of Sierra Sea development, expecting strong demand from homebuyers.

A general view of Sun Hung Kai Properties’ Sierra Sea residential development. Photo: Edmond So
Hong Kong property

Hong Kong primary home sales to see decade high as small flats perk up market

Attractive discounts, easing mortgage costs and policy support drive the market’s shift towards flats that cost below US$1.3 million.

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Primary home sales are projected to reach 21,000 next year. Photo: Dickson Lee
Hong Kong property

Yau Tong project nearly sells out amid hopes of home market recovery in 2026

The flats at One Park Place were in high demand after developers Sino Land, CSI Properties and MTR offered discounts of up to 15 per cent.

Cryptocurrency

Bitcoin drops below US$90,000 as AI worries sour risk appetite

The fall signals renewed market jitters after the historic crypto crash in October.

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