Bank of America / Merrill Lynch expect a lower Hong Kong dollar
Citing (this in summary):
- HKD liquidity squeeze to dissipate
- HIBOR will then decline, HKD to weaken
- HKMZ to defend the currency peg with intervention, This will see the aggregate balance fall, HIBOR rise again (more sustainably) and then a rise in the deposit rate and prime rate in the second half of this year