Hong Kong prime rate increase could hit this month, some analysts say, as costly defence of US-dollar peg continues

News Snapshot:

A majority of analysts predict Hong Kong’s commercial banks will raise the prime rate in September, but some expect a rate increase to come this month as a key indicator of bank liquidity continues to fall, according to a poll conducted by the South China Morning Post . Six out of 10 analysts surveyed believe the prime rate will rise by between 12.5 and 25 basis points in September. One expects the same level of increase sometime in the fourth quarter. One respondent said the rate will not rise at all. At the other extreme, two analysts expect a 50-basis-point...