HK interbank rates expected to remain low for a while, says Chan

Hong Kong's interbank rates are expected to stay low for a while due to the recent capital influx amid uncertainties in the United States, said Financial Secretary Paul Chan Mo-po.
Chan made the forecast when speaking at an event today. He mentioned that the recent situation in the United States has made Hong Kong a "safe haven" for capital.
Geopolitical tensions bring challenges but also opportunities, including providing good investment chances for overseas capital, Chan noted.
The Hong Kong Interbank Offered Rates have sharply dived since last month, due to the Hong Kong Monetary Authority's intervention, the revigorated financing activities in the city and the weakening of the US dollar.
Today, Hibor fell across nearly all maturities. The overnight rate once hit 0.01818 percent, the lowest after June 4.
At the event, Chan pointed out that artificial Intelligence is on the verge of divergent development, and it is expected that the high energy-consuming development model of the United States and the highly efficient and innovative model of China will start long-term competition.
In the face of the changes in the international order, Chan said Hong Kong does not need to be afraid but should think about how to position itself in the midst of the changes and find and create value.
He reiterated that finance, trade, and innovation and technology are the three most important economic drivers for the city in the future.
STAFF REPORTER