As the Fed continues to tighten its monetary policy, the Hong Kong dollar and US dollar interest rate differentials, particularly the short-term rates, might widen again. This would incentivise market participants to conduct carry trades, which will result in the triggering of the weak-side CU again. The speed and magnitude for the Hong Kong dollar interbank rates to catch up with their US dollar counterparts will ultimately be subject to the supply and demand of the Hong Kong dollar funding in the local market. Having said that, the public should be prepared for the Hong Kong dollar interbank rates to rise further. The Hong Kong dollar interbank rates have been rising gradually since early this year. With the continued rate hikes by the Fed, this trend is expected to continue.