(Yicai Global) Sept. 21 -- Several Hong Kong banks have pledged to raise deposit interest rates in line with expectations that the United States Federal Reserve will hike rates after a meeting next week.
HSBC boosted rates on three-month, six-month and 12-month deposits in Hong Kong dollars, American dollars and yuan by 0.1 percent yesterday, due to changes in the Hong Kong Interbank Offered Rate, Hong Kong Economic Times reported. The bank will also add an extra 0.05 percent onto 18-month rates.
DBS Bank also said it would raise half-year deposit rates of Hong Kong dollars by 0.05 percent and push its preferential rate, to 2 percent. To qualify for the better rate, customers must make a new deposit of HKD200,000 (USD25,600) and hold an Octopus Card -- which was once a prepaid public transport card but can now be used for day-to-day payments and even office access.
The Fed will announce whether or not it will increase interest rates on Sept. 27, with market expectations leaning towards another hike, which would be the eighth since 2015.
Chen Delin, chairman of the Hong Kong Monetary Authority, said when the Fed last bumped up rates -- in June -- that the Chinese special administrative region would follow moves made in the US.
Editor: James Boynton