Hong Kong Key Interest Rate Is Set to Reach Highest Since 2008
- Three-month Hibor is on track for record 11th monthly gain
- Higher rates add headwind to Hong Kong economic recovery: DBS
Hong Kong.
Photographer: Peter Parks/AFP/Getty Images
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A key gauge of borrowing costs in Hong Kong is set to climb to the highest level in 14 years in coming weeks, adding a further downdraft to the city’s struggling economy.
The three-month Hong Kong interbank offered rate advanced for an 18th straight day Friday, rising to 2.60%, just shy of its 2019 peak of 2.66%. An increase above that would put it at the highest since the global financial crisis in 2008. The gauge is also heading for a record 11th month of gains.