Hong Kong dollar short-term interest rates rise as long-term interest rates fall, creating a 16-month low for the one-month period.

The Federal Reserve cut interest rates by 0.5%, and under the linked exchange rate system, the Hong Kong Monetary Authority also lowered the base rate of the discount window by 50 basis points today. The Hong Kong dollar interbank rates saw short-term rates rise and medium to long-term rates fall. Among them, the overnight rate surged by 41 basis points, rising above 3% to 3.09512%, reaching a new high in over a week. However, the one-month interbank rate related to mortgage loans has dropped for six consecutive days, reaching 3.61441%, the lowest since May 3rd of last year, while the one-week interbank rate increased by 17 basis points to 3.17869%. The three-month interbank rate, which reflects the cost of bank funds, has fallen below 4% to 3.90232%, the lowest since May 3, 2023. As for long-term rates, the six-month and one-year rates have respectively fallen to 3.98429% and 4.00769%.