WSJ:HSBC Keeps HK Dollar Prime Lending Rate Unchanged At 5.00%
HONG KONG (Dow Jones)--HSBC Holdings PLC (HBC) unit Hongkong & Shanghai Banking Corp. said Wednesday it was leaving its prime lending rate in the city steady at 5.00%, a level unchanged since November 2008.
The lender said it also left its savings rates unchanged.
HSBC's statement followed the U.S. Federal Reserve's decision overnight to leave its official interest rates unchanged in a range of 0% to 0.25%. The Hong Kong Monetary Authority, the city's de facto central bank, said earlier Wednesday it kept its base rate at 0.50%.
Hong Kong's currency peg to the U.S. dollar bolts its monetary policy to that of the U.S., so the HKMA generally follows any interest rate adjustments by the Fed.
Hong Kong banks usually follow interest rate moves by the HKMA, but aren't required to do so.
-By Chester Yung, Dow Jones Newswires; 852-2832 2331; chester.yung@dowjones.com
