HK banks interest rates likely to upward pressure

HONG KONG: Hong Kong banks' lending and deposit rates are likely to see continued upward pressure although the territory's interbank rates will remain soft until the United States starts a tightening cycle, the head of the territory's de facto central bank said on Wednesday.

"There is likely to be continued upward pressure on bank lending and deposit rates as a result of the strong loan demand from various sectors including Mainland-related opportunities," Chan said in an article.

Hong Kong's currency peg with the U.S. dollar forces it to track U.S. monetary policy.