Demand for cash in Hong Kong is surging, leading to an extremely tight liquidity environment.
The Hong Kong Association of Banks reports that:
- one-month and six-month Hong Kong Interbank Offered Rate (Hibor) have hit their highest since 2000, i.e. highest in 23 years
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 pressured property market will face another headwind.
