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Hong Kong Banks Hold Prime Rates Amid US Trends

1/26/2026

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Summary

Story summary

Hong Kong banks are unlikely to cut their prime rates this year, even as interbank rates track lower US rates.
Arthur Yuen Kowk-hang, deputy chief executive of the Hong Kong Monetary Authority, said banks cannot reduce prime rates further without cutting near-zero savings rates.
Savings rates near zero would narrow net interest margins, about 1.4%, and the HKMA has aligned with the US Federal Reserve since 1983.

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Story summary

Hong Kong banks are unlikely to cut their prime rates this year, even as interbank rates track lower US rates.
Arthur Yuen Kowk-hang, deputy chief executive of the Hong Kong Monetary Authority, said banks cannot reduce prime rates further without cutting near-zero savings rates.
Savings rates near zero would narrow net interest margins, about 1.4%, and the HKMA has aligned with the US Federal Reserve since 1983.