Hong Kong Interbank Rate Rises as HKMA Action Saps Liquidity
- Liquidity has shrunk following Fed’s 75-basis point rate hike
- Rising Hibor will constrain the city’s economic recovery: DBS
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Hong Kong’s benchmark borrowing costs climbed to a two-year high as liquidity eased, adding to the risks for an economy that’s struggling to recover from a coronavirus outbreak.
The three-month Hong Kong interbank offered rate, or Hibor, rose six basis points to 1.35% on Monday, the highest since May 2020. The one-month gauge, a key reference for mortgages, increased one basis point to 0.61%, a level last seen in June 2020.