1.8

Monetary statistics continued to be influenced by a

number of special factors. The overall growth rate of the

money supply was moderate during the first quarter, but these

total figures concealed a very buoyant foreign currency

component since the broadly defined Hong Kong dollar component

actually contracted (paragraph 3.2). During the first

quarter, loans and advances grew only very slowly (paragraphs

3.7 and 3.8), while local interest rates

interest rates were largely stable

(paragraph 3.9).

3

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