Jingluo: The Federal Reserve has the opportunity to cut interest rates in the fourth quarter, which may ease the upward pressure on Hong Kong dollar interbank offered rates at that time

The Federal Reserve may cut interest rates for the first time in the fourth quarter, which is expected to lead to capital inflows into the Hong Kong market, thereby alleviating the upward pressure on the Hong Kong dollar interbank offered rate (HIBOR). The surplus in the Hong Kong banking system is expected to decrease to HKD 82.552 billion, while HIBOR has recently fluctuated upward. The market anticipates that Hong Kong banks may lower their prime rates based on commercial strategies, and HIBOR may subsequently decline. Currently, the one-month HIBOR is at 1.03%, and it is expected to challenge the 1.5% level. Homeowners with mortgages can still keep their payments below the capped interest rate as long as HIBOR remains below 2.2%