7.
In the first nine months of 1992, domestic exports to China surged further in value terms, while those to the United States recovered to show further growth. On the other hand, the value of domestic exports to Germany, the United Kingdom and Japan were still on a downtrend.
Labour market
8.
The seasonally adjusted unemployment rate in the third quarter, at 1.9% (provisional), was 0.4 of a percentage point lower than in the preceding three months ending July. The underemployment rate also declined, by 0.3 of a percentage point to 1.9% (provisional) over the same period.
Prices
9.
The year-on-year rate of increase in the CPI(A) was 9.9% in September, compared with 8.8% in July and 8.3% in August. The faster increase in September was largely due to an unusually sharp increase in the prices of fresh vegetables, and higher rentals for some public housing units. The price increases for other components of the CPI(A) were rather stable. Thus the relapse in September was concentrated in a few items and was not widespread.
Financial sector
10.
Local money market interest rates firmed up lately. This mainly reflected the concurrent stiffening of US dollar interest rates. The tightness of interbank liquidity towards the latter part of the month was also related to a heavily oversubscribed issue of new share in the stock market. At end-October, the 3-month interbank rate rose to 3 13/16%, which was 13/16 of a percentage point higher than a month earlier. Meanwhile, its Eurodollar counterpart edged up by 5/16 of a percentage point to 3 1/2%. The differential between the two rates thus reversed to 5/16 of a percentage point in favour of the Hong Kong dollar interest rate at end- October, from 3/16 of a percentage point in favour of the US dollar interest rate at end-September.
11.
The various deposit rates administered by the Hong Kong Association of Banks remained unchanged in October. At the end of the month, the savings, 3-month and 12-month deposit rates were 1 1/2%, 2 3/4% and 3 3/4% respectively. The best lending rate stood at 6 1/2%.
12.
The market exchange rate of the Hong Kong dollar against the US dollar remained stable, at around HK$7.73 per US$ during October. Against other major currencies, the exchange value of the Hong Kong dollar strengthened, in line with the movement of the US dollar. The effective exchange rate index rose from 109.6 at end-September to 112.1 at end-October.
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