Morgan Stanley predicts a rebound in the Hong Kong dollar interbank offered rate (Hibor) in the coming months, after recent declines driven by temporary liquidity surpluses. The investment bank attributes this expected increase to several factors, including the Hong Kong Monetary Authority’s (HKMA) efforts to gradually withdraw excess liquidity from the market and a reduction in demand for Hong Kong dollars due to slowing stock fund inflows. Despite an anticipated short-term rebound, Morgan Stanley believes sustained interest rate relief is unlikely before 2026, aligning with their broader prediction that the U.S. Federal Reserve will only begin meaningful rate cuts next year.