Hong Kong overnight rate hits 5pc, year's peak

Hong Kong’s overnight interbank borrowing rate surged to 5.018 percent on the month- and quarter-end settlement day, reaching a new high for the year.

The overnight Hong Kong Interbank Offered Rate jumped by 1.3 percentage points from the previous day, marking the largest single-day increase this year. 

In contrast, most other Hibor rates declined. The one-month Hibor, which is relevant for mortgages, fell to 3.538 percent, its lowest in over a week. This represented a drop of 6 basis points and was the fourth consecutive daily decrease. 

Meanwhile, the three-month Hibor, a key indicator of banks' funding costs, edged lower to 3.526 percent. 

It comes as the Hong Kong dollar traded near HK$7.781 against one US dollar.