Hong Kong dollar short-term interest rates rebounded, with two-week interbank rates rising sharply by 77 basis points to reach 5%.
Federal Reserve officials' remarks have cooled down market speculation about an imminent interest rate cut. On December 18th, the Hong Kong dollar's short-term interest rates rebounded, with the two-week interbank rate rising by 77 basis points to 5.35952%, surpassing the 5% mark. The one-month interbank rate, which is related to property mortgages, also ended its six-week decline and rose from a three-week low to 5.46054%, reaching a new high in over a week. The overnight rate has risen for two consecutive days and is currently at 4.23119%, the highest since December 8th. The three-month interbank rate, which reflects the cost of bank funds, ended its six-week decline and rebounded to 5.34095%. However, the long-term rates continued to decline, with the six-month and one-year rates both falling to 5.28399%. President of the Federal Reserve Bank of New York, Williams, stated that the Fed is not currently discussing an interest rate cut and if necessary, the authorities must be prepared to raise rates again. His remarks have tempered market expectations of an imminent rate cut by the Fed, resulting in a rebound in the US dollar exchange rate.
Zhitong App learned that the remarks made by officials from the Federal Reserve have cooled down the market speculation of an imminent interest rate cut. On December 18th, the Hong Kong dollar's short-term interest rates rebounded, with the two-week interbank rate rising by 77 basis points to 5.35952%, surpassing the 5% mark. The one-month interbank rate, which is related to property mortgages, also ended its six-week decline and rebounded from a three-week low to 5.46054%, reaching a new high in over a week. The overnight interbank rate has risen for two consecutive days and is currently at 4.23119%, the highest since December 8th. The three-month interbank rate, which reflects the cost of bank funds, ended its six-week decline and rebounded to 5.34095%. However, the long-term interest rates continued to decline, with the six-month and one-year rates both falling to 5.28399%.
John Williams, the President of the Federal Reserve Bank of New York, stated that the Federal Reserve is not currently discussing an interest rate cut, and if necessary, the authorities must be prepared to raise rates again. His comments have cooled down market expectations of an imminent interest rate cut by the Federal Reserve, leading to a rebound in the US dollar exchange rate.
