Meridian: MMI's latest report 3.54% is expected to fall back to 3% next quarter

The Zhitong Finance App learned that according to the latest data from the Meridian Mortgage Referral Research Department, the Meridian Mortgage Interest Rate Index (MMI) for April, which reflects the actual interest rate level that can generally be achieved by new mortgage customers, was reported at 3.54%, a slight increase of 3 basis points over the previous month. Cao Deming, chief vice president of Meridian Mortgage Referral, said that in April, the Bank of Hong Kong's new H and P deposits generally maintained interest rates at 3.5%, causing MMI to continue to hover around 3.5%, but banks are overfunded, and MMI is likely to fall back to 3% in the next quarter.

Cho Tak-ming pointed out that the Hong Kong Monetary Authority entered the market for the fourth time in May, and the balance of the Hong Kong banking system has risen to the level of HK$174 billion. The influx of hot money has caused HIBOR to drop rapidly in a month recently. Today (19th), the one-month HIBOR report was 1.19%, down 2 working days in a row, hitting a new low of nearly 34 months after July 25, 2022.

Cho Tak Ming said that if market demand for Hong Kong dollars continues, the aggregate balance of the banking system remains above HK$100 billion, HIBOR may continue to hover between 1% and 2%, and MMI may fall back to 3% in the next quarter.