The Hong Kong dollar overnight interbank rate reached a new high for the year on month-end settlement day, but the one-month and three-month rates fell below 4%.
On April 30, before the month-end and the May Day holiday, the Hong Kong dollar interbank interest rate softened, with the overnight rate rising by 22 basis points to 4.5%, the highest since December 31 of last year, while other maturities softened, with both one-month and three-month rates falling below 4%.
What the Latest Inflation Data Means for ASX 200 Investors and RBA Interest Rate Cuts
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The rebound in electricity prices has pushed up the quarterly CPI in Australia, but core inflation has fallen to a three-year low, with the market betting on another rate cut in May.
According to data released by the Australian Bureau of Statistics on Wednesday, the CPI rose by 0.9% in the first quarter, higher than the market forecast of 0.8%. However, the annual inflation rate remained at 2.4%, indicating moderate overall price pressure. The quarterly increase in the 'trimmed mean core inflation,' which is of greater concern to policymakers, was 0.7%, slightly above the expected 0.6%, but the annual rate slowed from 3.3% in the previous quarter to 2.9%, marking the first return to the Reserve Bank of Australia's target range of 2%-3% since the end of 2021. Despite the data being slightly higher than expected, the Australian Dollar rose 0.3% against the US Dollar in the short term, while earlier gains in three-year government bond Futures were reversed.
Australia's Core Inflation Exceeds Expectations, Damping Rate Cut Bets
Slowing Australian Inflation Supports Case for Imminent Rate Cut
