In this interview, Joey Chew, HSBC’s head of Asia FX Research, shares insights into the outlook for the currency and monetary policy in Asia. Chew discusses the impact of the COVID-19 pandemic, the global economic recovery, and the geopolitical tensions in the region. He also provides his views on the potential for a stronger US dollar and the implications for Asian currencies. This article is essential reading for anyone interested in the latest developments in the Asian currency markets.
Multiple lenders, including Barclays, NatWest, HSBC, The Co-Operative Bank, and Accord, have announced increases in their mortgage rates. These hikes follow an upward trend in swap rates, which underpin fixed-rate mortgages. Experts predict further rate increases, impacting both new borrowers and those nearing the end of fixed-rate deals. The average two-year fixed residential mortgage rate has slightly decreased, while the average five-year rate remains stable. Despite the dip in the two-year rate, monthly repayments have significantly increased compared to two years ago due to higher interest rates.
HSBC has adjusted its stance on HDFC Bank, increasing the price target from INR 1,750 to INR 1,850, while reiterating a Buy rating. The revision in the price target reflects revised EPS estimates and growth forecasts. HSBC expects HDFC Bank’s deposit growth to reach a CAGR of 17% and loan growth to reach a CAGR of 13% over the period from the fiscal year 2024 to 2027.
