Hong Kong hit by surging demand for cash: Highest Hibor rates in 23 Years

<p>Demand for cash in Hong Kong is surging, leading to an extremely tight liquidity environment.&nbsp;</p><p>The Hong Kong Association of Banks reports that:</p><ul><li>one-month and six-month Hong Kong Interbank Offered Rate (Hibor) have hit their highest since 2000, i.e. highest in 23 years</li></ul><p>These rates are the basis for pricing mortgage rates in HK, but mortgage rates are capped. Caps can be raised though. If they do an already&nbsp;pressured property market will face another headwind.&nbsp;</p><p><br></p><figure data-media-><img src="https://images.forexlive.com/images/Hong%20Kong%20typhoon_id_88227e10-b70f-4e7c-a4c2-447b99bcdfae_original.jpg" alt="Hong Kong typhoon" wrapper-="wrapper-" data-src="https://images.forexlive.com/images/Hong%20Kong%20typhoon_id_88227e10-b70f-4e7c-a4c2-447b99bcdfae_original.jpg" /></figure><p><br></p><p><br></p><p><br></p><p><br></p>

This article was written by Eamonn Sheridan at www.forexlive.com.