Morgan Stanley: Hong Kong dollar Hibor may rebound in the coming months

Morgan Stanley said that the Hong Kong dollar Hibor may rebound from the recent decline in the next few months, as some excess liquidity in the market may be reabsorbed. The recent decline in Hibor can be attributed to three key factors: the Hong Kong Monetary Authority injecting a large amount of Hong Kong dollar liquidity to maintain the exchange rate range; easing pressure from selling US dollars; weakening demand for the Hong Kong dollar from stock fund inflows. "We believe that there is a high possibility of Hibor rebounding in the next few months, although the specific timing is difficult to determine." The Hong Kong dollar interest rate is expected to continue to decline until 2026, when the Federal Reserve is expected to further cut interest rates.