Morgan Stanley: The Hong Kong dollar Hibor may rebound in the coming months

ChainCatcher news, Morgan Stanley stated that the Hong Kong Interbank Offered Rate (Hibor) may rebound from its recent decline in the coming months, as some excess liquidity in the market may be reabsorbed.

The recent decline in Hibor can be attributed to three key factors: the Hong Kong Monetary Authority injecting a large amount of Hong Kong dollar liquidity to maintain the exchange rate range; reduced selling pressure on the US dollar; and weakened demand for the Hong Kong dollar due to stock fund inflows. "We believe there is a high possibility of Hibor rebounding in the coming months, although the exact timing is difficult to determine." A continued decline in Hong Kong dollar interest rates is expected to wait until 2026, when the Federal Reserve is anticipated to further cut interest rates.