CITIC International expects US to hold off on rate hikes this year, with 3 hikes next year

CITIC International expects the US to hold off on rate hikes this year, with 3 hikes possibly next year, and Hong Kong dollar interbank rates will rise in line with US dollar rate hikes. The bank estimates that Hong Kong's prime lending rate (P) will rise by 0.125厘 in the first quarter of next year, with a full-year increase of 0.25厘. The bank said US rate hikes have recently slowed property market transactions, and net rental yields are unlikely to outperform US dollar deposit rates, forecasting that local residential prices in 2027 will fall by about 5% from this year's base.