HONG KONG—Hong Kong on Thursday raised its base rate by 75 basis points (bps) to 3.5 percent, prompting the largest commercial banks operating in the territory, including HSBC, to increase their best lending rates.
HSBC was the first bank in Hong Kong to announce it was raising its best lending rate by 12.5 basis points (bps) to 5.125 percent from 5.0 percent, effective Sept. 23, its first rate hike since September 2018.
It was followed by Standard Chartered, which raised its best lending rate by the same amount to 5.375 percent, starting Sept. 23.
“Anticipation around a potential prime rate increase in Hong Kong has been ripe and today’s announcement marks the beginning of an upward cycle,” Luanne Lim, HSBC’s chief executive for Hong Kong, said in a statement….