Group 1 - Standard Chartered anticipates a 50 basis point interest rate cut by the US this week, initiating a rate-reduction cycle expected to last into next year, which is likely to enhance investor sentiment in Hong Kong and other markets [1][2] - Weak employment data, declining consumption, and lower inflation rates are expected to prompt the US Federal Reserve to implement its first rate cut of the year [2][5] - The Federal Reserve is projected to lower its key rate to a target range of 3.75% to 4% during the upcoming Federal Open Market Committee meeting, marking the first adjustment since December [3][5] Group 2 - The US is expected to continue reducing its key rate next year by an additional 75 basis points to a full percentage point, with the one-month Hong Kong interbank offered rate (Hibor) projected to decrease to around 2% to 2.5% [6] - A lower interest rate is anticipated to benefit investment markets and the overall economy in Hong Kong, with strong stock market turnover and active initial public offerings encouraging more investors [7] - Swiss private bank Lombard Odier forecasts that the US will cut interest rates six times from September through the end of 2026, which may lead to increased capital flows into emerging markets and benefit Chinese stocks and bonds [7]
Standard Chartered predicts Fed rate cut this week to boost Hong Kong markets