HONG KONG, Dec 17 (Reuters) - HSBC Holdings said on Thursday it will leave its best lending rate unchanged in Hong Kong at 5 percent even after the city’s central bank raised the base rate charged through its overnight discount window by 25 basis points.
“As there is ample liquidity in the Hong Kong financial system, the bank has decided to keep its best lending rate and Hong Kong dollar savings deposit rate unchanged,” said Diana Cesar, chief executive, Hong Kong, HSBC, adding that the bank would continue to monitor the situation.
The Hong Kong Monetary Authority had earlier on Thursday raised the base rate charged through its overnight discount to 0.75 percent.
Hong Kong tracks U.S. interest rate moves because its currency is pegged to the U.S. dollar, although local banks have some leeway to lag U.S. moves when setting prime rates.
Reporting By Twinnie Siu, Donny Kwok and Meg Shen; Editing by Anne Marie Roantree