HKMA Chief: Interest Rate Hike Only a Matter of Time for Borrowers

Interest rates are expected to go up further this year (image RSMcLeod/iStockPhoto)(RSMcLeod iStockPhoto)

The Hong Kong Monetary Authority (HKMA) raised the base rate by 25 basis points to 2.25% on Thursday, following a 25 basis point move by the US’s Federal Reserve.

This is the second time the de-facto central bank in Hong Kong increasing the rate this year.

“It’s only a matter of time before banks raise deposit and prime rates as the upward trend in Hibor, the benchmark interbank lending rate, is obvious, HKMA chief executive Norman Chan said during a press conference on Thursday.