Hong Kong Interbank Offered Rate (HIBOR)

The Hong Kong Interbank Offered Rate (HIBOR) is the reference interest rate for Hong Kong dollar-denominated loans in the interbank market. It is calculated as the average of the interest rates quoted by a panel of banks on unsecured Hong Kong dollar deposits of different maturities. The HIBOR is published by the Hong Kong Monetary Authority (HKMA) on a daily basis.

The HIBOR is used as a benchmark for a wide range of financial products, including loans, mortgages, and bonds. It is also used as a reference for pricing other financial instruments, such as swaps and options.

The HIBOR is an important indicator of the cost of borrowing in Hong Kong. It is influenced by a number of factors, including the monetary policy of the HKMA, the level of economic activity, and the demand for and supply of Hong Kong dollars.

The HIBOR is a floating rate, which means that it changes over time. The changes in the HIBOR are typically driven by changes in the interest rates set by the HKMA. However, the HIBOR can also be affected by other factors, such as changes in the demand for and supply of Hong Kong dollars.

The HIBOR is an important tool for financial institutions and market participants in Hong Kong. It is used to price a wide range of financial products and to manage their risk exposures. The HIBOR is also a useful indicator of the cost of borrowing in Hong Kong and the state of the economy.