The Hong Kong Association of Banks cautioned that the Hong Kong dollar interbank offered rate could rise more rapidly if the city's aggregate balance - currently near HK$50 billion - falls below that threshold, urging the public to exercise caution in risk management.
The warning came after the local currency once again hit the weak-end convertibility guarantee of 7.85 against the US dollar.
The Hong Kong Monetary Authority intervened during New York trading hours on Thursday, buying HK$3.376 billion worth of local currency.
This intervention was expected to reduce the banking system's aggregate balance to HK$53.716 billion on Friday.
The association projected that the three-month HIBOR could climb to around 3 percent by year-end, while the one-month rate - more susceptible to overnight rate fluctuations - may rebound to about 2 percent.
Regarding the commercial property sector, the association noted that post-pandemic shifts toward e-commerce and remote work have dampened demand for commercial real estate, suggesting the sector's adjustment period could be prolonged.
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