HSBC Keeps HK Dollar Prime Lending Rate Unchanged At 5.00%

24th Jun 2010 09:00

HONG KONG (Dow Jones)--HSBC Holdings PLC (HBC) unit Hongkong & Shanghai Banking Corp. said Thursday it was leaving its best lending rate in Hong Kong unchanged at 5.00%, a level it has maintained since November 2008. The bank also left its savings rates unchanged. The statement followed the U.S. Federal Reserve's decision overnight to leave its official interest rates unchanged. The Hong Kong Monetary Authority, the city's de facto central bank, said earlier Thursday it had 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; [email protected] (END) Dow Jones Newswires June 24, 2010 04:00 ET (08:00 GMT)