One-month interest rates rose for 7 consecutive days
Nov 23, 2022
Hong Kong
By Interne
  • City News
  • mortgage
  • interest rates
  • housing market
Entering the second half of November, near the end of the year plus the Hong Kong banking system balance fell through the 100 billion mark, the market tightening of the money, the Hong Kong dollar interest rates for two consecutive days all up, including short-term interest rates rose faster, and H mortgage-related 1-month interest rates rose for 7 days in a row, yesterday rose to 3.8897%, continued to see a new high of more than 14 years.

Standard Chartered yesterday raised the new H mortgage lock interest rate ceiling of 0.25%, so that the actual mortgage rate increased to 3.375%, analysis that in the "interest rate devil" to kill, the bank's cost of funds pressure rose sharply, I believe that the pressure of other banks to raise interest rates is also approaching.


Hong Kong dollar interest rates rose yesterday, overnight interest rates rose to 3.35821%, 1-week and 2-week rates rose to 3.75702% and 3.82161%, respectively, reflecting the cost of bank funding for the 3-month rate rose to 5.17661%.


For the long term, the semi-annual rate was 5.33214% and the one-year rate was 5.59327%. In the current cycle of interest rate hikes, Hong Kong has twice followed the United States to raise interest rates, and after the rise in Hong Kong interest rates, interest rate arbitrage activities significantly reduced.


Hong Kong exchange rate since last week gradually back to the courage, yesterday once popped to 7.8016 level, almost rose through the 7.8 strong and weak dividing line. As of 7:30 last night, Hong Kong reported 7.8149.


Mizuho Bank, chief Asian foreign exchange strategist Zhang Jiantai mentioned that the Hong Kong dollar earlier frequently touched 7.85 weak exchange guarantee, so that the HKMA to take over the Hong Kong dollar to sell, resulting in the rise in inter-bank financing costs, coupled with the rise in Hong Kong interest rates, Hong Kong and the United States interest rate differential narrowed, arbitrage transactions become unprofitable, also led to the Hong Kong dollar back to brave. He expects the Federal Reserve next month before the interest rate, the Hong Kong dollar will stabilize at 7.8 calculated.


DBS Hong Kong treasury market department of global market strategist Li Ruofan is expected to Hong Kong dollar interest rates before the end of the year may touch the level of 4%, if the Federal Reserve next month to raise interest rates by 0.5%, is expected to Hong Kong prime rate (P) or an increase of 0.25%, but then also depends on the actual interest rate situation, if the bank funding cost pressure, do not rule out or a large increase.


In the property market, following the Hong Kong Bank to increase P 0.25% at the beginning of the month, Standard Chartered yesterday took the lead in raising the H mortgage lock interest rate ceiling, so that the actual mortgage rate increased to 3.375%, but still lower than the level of 1-month interest rate.


To 1 month interest rate yesterday reported 3.8897%, even if the rate increased to 3.375%, there is still a gap of more than 0.5%, reflecting that banks face rising funding costs and pressure to raise the mortgage rate is also increasing day by day.


Ricacorp Mortgage Agency Managing Director Wong Wing-yan said that there are banks to raise the mortgage ceiling rate, the main reason or interest rates tend to rise, the current interest rate of fixed deposits is higher, so that the bank's capital cost pressure, I believe it will be a prelude to increase P.


However, she expects that other banks with a larger market share may not follow the mortgage ceiling rate, depending mainly on the individual banks to take the mortgage business in the coming year.

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