The Bank’s deposit interest rate reached 2.5% and the US dollar was escalated.
As the U.S. Federal Reserve raised the interest rate by 0.25 percent as expected, some banks in Hong Kong increased the interest rate of U.S. dollar time deposits to attract customers. Standard Chartered has raised the 12-month fixed rate of U.S. dollar deposits to 2.5% per annum today. The U.S. dollar of BOCHK (02388) The deposit rate has also been raised to 2.35%. Market participants pointed out that at present, the U.S. dollar deposit rate is nearly 1 percent higher than the Hong Kong dollar deposit reserve, and depositors’ Syrian dollar deposits have increased. It is expected that banks will successively increase the U.S. dollar deposit rate.
Given that the interest rate will rise further this year, some depositors may hesitate to decide whether or not to present the best time for fixing the US dollar. Therefore, Standard Chartered introduced four cycles at the beginning of this month before the US interest rate, based on LIBOR. US dollar time deposits to cater to customer needs.
Standard Chartered entry requires 100,000 new money
After the United States raised interest rates, BOCHK raised the 12-month fixed rate for US dollars and mobile banking by 0.25 per cent to 2.35 per cent. The minimum deposit was equivalent to HK$10,000 or more. In the 12 months from today, the Standard Chartered dollar will be upgraded from 2.25 to 2.5%, with a minimum deposit of new funds equivalent to HK$100,000 or more.
Market participants believe that as the interest rate rises, and interest rates have come one after another, the dollar’s fixed interest rate has become attractive, and some public utilities, and even the attractiveness of the return on rent in the purchase of buildings, has decreased.
Lin Junmin, head of research at the treasury unit of Shanghai Commercial Bank, pointed out that as interest rates rise, relative interest rates attract, and trade wars are in turmoil, some investors may choose defensive dollar deposits.
Yan Jianwen, deputy director of the treasury business of China Everbright Bank’s Hong Kong branch’s financial market department, also said that the difference between the US dollar and the Hong Kong dollar deposits and deposits is now close to 1 per cent, making the US dollar deposit attractive, but it is important to note that if you want to redeem USD for deposits, There will be some exchange costs and exchange rate risks.
According to Mai Jieliang, Head of Standard Chartered Hong Kong’s personal finance business deposit department, increasing the US dollar deposit rate mainly reflects the effect of rising US interest rates. Since the interest rate is higher than the interest rate in Hong Kong, it has been seen from the beginning of the year that customers will convert Hong Kong dollar deposits into US dollars. Save, although the scale is not large.
The interest rate rose, but the interest rate did not immediately follow. Many banks, including HSBC and BOC, maintained the best lending rate unchanged. Lin Junyi believes that the bank’s banking system balance is still nearly 180 billion yuan, even if the Hong Kong exchange rate fell to 7.85 triggered the gold It will take a while for the Bureau to enter the market and the flow of funds will be delayed. It is expected that the best interest rate in Hong Kong will not be able to raise interest rates until the end of the third quarter.
The fastest P-rate in the second half of the year
Although Hong Kong interest rates did not follow the upward adjustment of the interest rates, the Hong Kong dollar interbank rates did increase slightly recently, and some banks are also waiting to launch a Hong Kong dollar deposit discount as a reminder. Standard Chartered Hong Kong’s 12-month fixed deposit interest rate rose by 0.4% to 1.6%, and the 18-month Hong Kong dollar deposit reserve reached 2%, but the admission fee was HK$1 million or more.
Wang Meifeng, managing director of China Mortgage Mortgage Brokers, said that although the US will raise interest rates two times or even three times this year, the pace of interest rate hikes remains moderate, and the Hong Kong-US interest rate differential still has a buffer, and the maximum interest rate (P) has not been raised. However, as the interest rate in Hong Kong further expands, the conditions for raising interest rates will increase, and the bank will raise the best lending rate as soon as possible in the second half of the year. However, it is believed that the increase in the prime rate this year will not be more than 5%, and it is expected that the rate hike will be moderate. The property market has a short-term and minor impact in the second half of the year.