HKMA warns on interest rates, traders predict cuts in September

From SCMP: 2024-06-13 00:05:37

Hong Kong interbank rates saw a slight increase, with the one-week Hibor rising to 4 per cent. Federal Reserve Chairman Powell expressed reluctance to lower interest rates despite falling inflation rates. Market estimates suggest a potential rate cut in September or November. Asian equity markets reacted positively, with Hong Kong’s Hang Seng Index rising 1.3 per cent.

A rate cut later this year could benefit the Hong Kong property market. The HKMA advised the public to carefully assess risks when making property or borrowing decisions. Despite stable exchange rates, interbank rates in Hong Kong may remain high. Powell emphasized the need for more good data to support confidence in sustainable inflation levels moving toward the US central bank’s 2 per cent target.



Read more at SCMP: HKMA cautions on interest rate outlook, while most traders see cuts in September