Revival of activity,

of activity, the building,

the building, construction and property development sector remained rather depressed. However, loans

to

individuals to purchase residential property including

flats in the Home Ownership Scheme and Private Sector

Participation Scheme rose by 20.6%, compared with 9.8% during

the second half of 1982. Given that the

the average level of

mortgage interest rates in the first half of 1983 was roughly

as in the second half of 1982 and that there was

three percentage points rise in the best lending rate during

the second quarter, this suggests an increased interest in

buying residential property (mostly small flats).

Interest rates

3.10

remained stable

Interest rates in Hong Kong throughout the first quarter. There were then two upward adjustments in deposit rates by the Hong Kong Association of Banks (11).

note-issuing

The best lending rate charged by the two

banks was also adjusted upwards, on the first

(11)

/occasion

Interest rates paid by members of the Hong Kong Association of Banks, and the best lending rate of the note-issuing banks:

Effective 7 days'

from

30.12.82 4 3/4%

call

3 months

6 months

12 months Savings

BLR

7 1/2%

7 3/48

8%

4 3/4%

10 1/2%

20. 4.83

5 1/28

8 1/28

8 3/48

98

5 1/2%

11 1/28

24. 5.83

7 1/2%

10 1/2%

10 3/4%

118

7 1/2%

13 1/28

6. 7.83

6 1/2%

9 1/2%

9 3/4%

10%

6 1/2%

12 1/2%

25. 7.83

5 1/2%

8 1/2%

8 3/4%

9%

5 1/28

11 1/28

29

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