1-month interest rate saw 1.12% decline in 9 years the most urgent

After the year ended, the Hong Kong dollar interest rate continued to plunge. The 1-month HIBOR related to mortgage interest rate dropped 1.65% to 1.12% yesterday, the largest drop since January 2009. However, market participants believe that the interest rates in the United States are expected to rise and the interest rate will hardly fall sharply. It is expected that the one-month interest rate will rise and fall 1.05 to 1.25% in the short term.

The Treasury Markets Association website showed that the Hong Kong dollar interest rate cut overnight across the board, with one-month interest rate slips falling for four consecutive trading days, down 1.12% yesterday to mid-month last month. US dollar against the Hong Kong dollar yesterday was below 7.82 at 10 pm at 7.8167.

Wang Liang, Managing Director of DBS Hong Kong’s Treasury Markets Department, pointed out that the softening of the interest rate cut mainly resulted from the elimination of the end of the year. The booming stock market reflected the inflow of capital. The pressure on the Hong Kong exchange slightly eased, leaving banks willing to disburse funds. Outlook 1-month interest rate cuts in the future and then plunged the opportunity is not high, because the United States interest rates bullish, earlier US debt interest rates fall, has recently been stabilized, Hong Kong and the United States if the gap is too wide will trigger the interest rate swap activities, the expected loan Demand is still sustained, also support the Hong Kong interest rates will not plunge.

Wang Liang enjoys an estimated short-term interest rate of 1 month or between 1.05 and 1.25%. After the United States has raised interest rates, it may stabilize at 1.25% or upstairs.