HIBOR goes up fast

Federal Reserve just announced no change in interest rate, but the trend of increasing US interest rate is almost a consensus of the market. Due to the currency board arrangement in Hong Kong, the 1-month HK interbank offer rate (HIBOR 1m) has been going up rapidly in recent months, as shown in the chart below.

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source: HKMA (Nov., 2, 2017) http://www.hkma.gov.hk/eng/market-data-and-statistics/monthly-statistical-bulletin/table.shtml#section6

The most recent HIBOR 1m is 0.815% (2 Nov 2017), which breaks the 9-year record since 2008. Most mortgages are repaid based on HIBOR, the upsurge of HIBOR would immediately affect the monthly payment of mortgages.

ecyY is the Founder of Real Estate Development and Building Research & Information Centre REDBRIC

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