J
between interest rates in Hong Kong and overseas (15) increases
the net inflow of funds for example, by dissuading exporters from retaining their earnings overseas and borrowing relatively
cheaply in Hong Kong to meet their Hong Kong dollar liabilities,
by discouraging Hong Kong residents from placing their funds overseas and by encouraging foreign banks to be less dependent
on the inter-bank market the exchange value of the Hong Kong dollar should be strengthened. Although an increase in the net
-
inflow of funds may have a perverse effect on the growth of the
money supply, the offsetting influence of higher interest rates
on the demand for loans should not be overlooked.
(15)
Euro-dollar
time deposits
Interest rates on 3-month deposits:
deposits(*)
HK dollar certificates of deposits
HK dollar time
28. 1.78
7 7/16
1 3/4
4 7/8
•
4. 3.78
7 1/4
1 3/4
5
1. 4.78
7 7/16
1 3/4
5 1/8
29. 4.78
7 5/8
1 3/4
4 5/8
27. 5.78
8 1/16
2 1/4
5 1/8
1. 7.78
8 5/8
2 1/4
5 1/2
29. 7.78
8 7/16
2 1/2
5 5/8
26.8.78
8 1/2
2 1/2
5 1/2
2. 9.78
8 7/8
2 1/2
5 5/8
30.9.
78
9 7/16
2 1/2
6 5/8
28.10.78
10 3/4
2 1/2
7
4.11.78
11 3/8
3 1/2
7 1/4
9.11.78
11 13/16
4 1/2
8 1/4
Note: (*) Rate paid by principal banks
17
/(a)
Control