SING TAO Previous NextHong Kong's interbank rates rose above 4 percent as the US Federal Reserve warned there would be another two hikes in interest rates this year. Interbank borrowing costs have been rising due to seasonal demand as the half-year point nears, and yesterday saw the overnight Hong Kong interbank offered rate - Hibor - climb to a three-week high of 4.25 percent. Hong Kong's monetary policy moves in lockstep with the Fed as its currency is pegged to the greenback. But experts warn there may a further rise in prime rates. This came as the European Central Bank increased interest rates by another quarter-point to 3.5 percent yesterday, the highest in 22 years, and signaled more hikes.
