Meridians: The Federal Reserve has the opportunity to cut interest rates in the fourth quarter, which may ease the pressure of rising Hong Kong dollar interest rates.

Mr. Cao Deming, Chief Vice President of Referral Mortgage Brokerage Services, stated that in recent months the Hong Kong dollar has continued to trigger the "weak side convertibility undertaking." This morning, the Hong Kong Monetary Authority intervened in the market for the seventh time to buy Hong Kong dollars, causing the total banking system balance to fall to 825.52 billion Hong Kong dollars. The continuous decline in the total banking system balance has led to a repeated increase in HIBOR. Although the trend of HIBOR is fluctuating, the Federal Reserve may have the opportunity to cut interest rates for the first time in the fourth quarter. At that time, funds may flow into the Hong Kong market, alleviating the pressure of rising Hong Kong dollar interest rates. After the passage of the US "big and beautiful" bill, the market believes that some funds may flow to Asian markets, and it is expected that Hong Kong banks may adjust their most favorable interest rates according to their own business strategies, and at that time HIBOR is also expected to follow suit and fall. On July 31st, HSBC announced that the Prime Rate (P) will remain unchanged. Cao Deming stated that Hong Kong banks lowered the most favorable interest rate three times last year, with the magnitude and speed higher than market expectations. Banks did not adjust the most favorable interest rate due to considerations of the trend of US interest rates and funding costs. Today's one-month HIBOR is reported at 1.03%, and it is expected that HIBOR may challenge the 1.5% level. Cao Deming pointed out that even though HIBOR has risen to the 1% level, calculated according to the usual H+1.3% formula, the actual interest rate is 2.33%, still 1.17% lower than the ceiling interest rate of 3.5%. For homeowners currently refinancing, as long as HIBOR remains below 2.2%, it is still possible to have a lower rate than the ceiling interest rate for refinancing.