The Hong Kong Monetary Authority lowered its base rate by 64 basis points to 0.86 percent on March 16th 2020, after the Fed made an emergency 100bps rate cut in the fed funds rate, the second unexpected rate drop in near two weeks, aiming to protect the economy from a potential recession after the COVID-19 pandemic shows no sign of slowing. The central bank also slashed with immediate effect the countercyclical capital buffer it required financial institutions to hold from 2% to 1% of their risk-weighted assets. The Countercyclical Capital Buffer is part of the Basel III regulatory capital framework and aims to build up additional capital during periods of excessive credit growth.
Interest Rate in Hong Kong averaged 3.32 percent from 1998 until 2020, reaching an all time high of 8 percent in May of 2000 and a record low of 0.50 percent in December of 2008. This page provides the latest reported value for - Hong Kong Interest Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. Hong Kong Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on March of 2020. source: Hong Kong Monetary Authority
Interest Rate in Hong Kong is expected to be 0.86 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Hong Kong to stand at 0.50 in 12 months time. In the long-term, the Hong Kong Interest Rate is projected to trend around 0.75 percent in 2021 and 1.25 percent in 2022, according to our econometric models.