HK interbank rates remain steady

PUBLISHED : Wednesday, 26 September, 2007, 12:00am
UPDATED : Wednesday, 26 September, 2007, 12:00am

Hong Kong interbank rates remained firm yesterday as upcoming initial public offerings pushed fund demand.

'I think interbank rates will continue to stand at the current high level at least until the end of this month,' said Dennis Wong Wai-hung, a senior manager at Hang Seng Bank.

Overnight rates ended at 4.25 per cent, while one-week and one-month interbank rates closed at 5.9 per cent and 5.3 per cent.

Higher interbank rates also brought the Hong Kong dollar to 7.7670 against the greenback, the highest so far this year, as some banks sold US dollars for Hong Kong dollars.

The rise in the interbank rate also reflected concerns market participants had over the contagious effect of the US subprime mortgage meltdown, so bankers were cautious on lending.