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Hong Kong Faces First Prime Rate Hike Since 2018 on Hawkish Fed

  • All 12 economists in a survey see prime rate hike this year
  • City’s housing market faces “perfect storm” this year: OCBC
Updated on

Hong Kong banks are set to lift prime rates for the first time in four years in response to the Federal Reserve’s aggressive policy tightening, spelling stress for one of the world’s most expensive property markets.

All 12 economists surveyed by Bloomberg predict that the prime rates will climb this year, some by as much as 100 basis points. The one-month interbank rate, known as Hibor, advanced for a seventh straight session to stand beyond 1% for the first time since June 2020.