5/2c
5.
- 2 -
Consequently, on 14 January 1988, the Committee,
again after consultation with me, exercised their powers
under section 12(1) of the Hong Kong Association of Banks
Ordinance and made certain amendments to the Rules on
Interest Rates. These amendments empower the Committee to
specify practices to be adopted by banks so that negative
interest rates may be imposed on large Hong Kong dollar
balances maintained by their customers, if there is a need
to do so.
Le
прес
"/c
X.
The Committee have also announced that by
10 March 1988 they will be in a position to implement
negative interest rates, again if there is a need to do so.
5.
7
Thus, the Committee working closely with the
Government have created a useful mechanism to counter
speculation on a revaluation of the Hong Kong dollar
against the US dollar.
In effect, depending on the rate
to be specified, the imposition of negative interest rates
will make it expensive to hold large Hong Kong dollar
balances.
بھر
Sir, speculation on a revaluation has adversely
affected the normal conduct of the business of banking and
other commercial activities. It has also reduced the
income of savers, of the man in the street.