, Hong Kong

Prime rates will not immediately rise after Fed hike: OCBC

Banks have enough money to delay its implementation.

Hong Kong banks’ sufficient liquidity at home and abroad can delay immediate prime rate hikes even as the Fed moves to raise its benchmark interest rate with the Federal Open Market Committee looming closer. 

The FOMC holds eight regularly scheduled meetings yearly to review economic and financial conditions, determine the appropriate stance of monetary policy, and assess market risks. 

“Nevertheless, before global monetary tightening accelerates and fuels capital outflows from HK, banks may still refrain from hiking prime rates given ample liquidity at home and abroad. In other words, we expect prime rate will not be lifted right after March FOMC,” said OCBC Bank in its weekly macro views research report. 

This comes as big banks like HSBC, BOC and Hang Seng Bank respectively recently locked their mortgage rates amidst the market consensus that the prime rate is set to rise following the HIBOR’s projected increase.

Join Hong Kong Business community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Top News

HKEX launched Order Routing Service on Integrated Fund Platform
The move addressed some long-standing operational challenges.Hong Kong Exchanges and Clearing Limited (HKEX) launched the Order Routing Service that connects fund distributors and transfer agents on its Integrated Fund Platform (IFP).The new service is based on the Fund Repository system and helps transform the fund order placement process into a seamless and integrated system.Supported by the data network from Shenzhen Stock Exchange, the service promotes better efficiency and collaboration across the fund distribution network by enhancing communications between fund distributors and agents.IFP also welcomes an initial cohort of 33 distributors, transfer agents and fund houses.
HKTDC signs first MOU with Singapore-based bank
The partnership also aims to generate job opportunities and strengthen communities across both regions.The Hong Kong Trade Development Council (HKTDC) signed a Memorandum of Understanding (MOU) with United Overseas Bank Hong Kong Branch (UOB Hong Kong) at the ASEAN Conference 2025 in Singapore, a first of such a partnership for Hong Kong.The MOU aims to strengthen regional ties and promote sustainable growth by leveraging UOB’s extensive regional network and financial expertise, alongside HKTDC’s strengths in trade promotion, to access new markets, resources and professional knowledge.The MOU also promotes local enterprise development and economic resilience by matching local value chains with foreign direct investments(FDI). 
OCBC Bank Hong Kong sets up team to support entrepreneurs
OCBC Group is aiming to disburse S$5b in loans to entrepreneurs by 2028