UPDATE: Major Hong Kong Banks Keep Prime Rate Steady; Tracking Fed
30 April 2009 - 9:21PM
Dow Jones News
Major Hong Kong banks held their prime lending rates steady
Thursday, following the U.S. Federal Reserve's decision overnight
to keep the benchmark U.S. interest rate near zero.
The banks disclosed they were keeping the rates unchanged after
the Hong Kong Monetary Authority said earlier Thursday it kept its
base rate at 0.50%.
HSBC Holdings PLC (HBC) unit Hongkong & Shanghai Banking
Corp. said Thursday it is keeping its prime lending rate unchanged
at 5.00%. Hang Seng Bank Ltd. (0011.HK), another HSBC unit, and BOC
Hong Kong (Holdings) Ltd. (2388.HK) also held their prime rates
steady at 5.00%.
The Fed's policy-setting board unanimously voted overnight to
keep the target federal funds rate unchanged at zero to 0.25%.
Although the HKMA typically moves in tandem with the Fed, Hong
Kong's commercial banks set their own rates. They declined to go
along with four Fed rate cuts between October and December that
brought the federal funds rate to as low as zero from 3.50%.
-By Jackie Cheung and Jeffrey Ng, Dow Jones Newswires;
852-2802-7002; jackie.cheung@dowjones.com