Interest rates
3.12 Hong Kong
range
dollar market interest
-
rates
e.g. those
offered by
prevailing in the money market and those
deposit-taking companies moved mostly in a fairly narrow
(11)
Thus, the 3-month rate firmed from about 14% at
the start of the year to slightly above 15% in mid-April, but
eased back to little over 14% by the middle of the year.
Shorter rates were, however, somewhat more volatile: for
example, the rate for 7-day money ranged from 88% in early
January, to over 15% in May, and ended the period at 13 1/4%.
On 31st May, reflecting the easier tone, which resulted,
turn, from general weakness in the demand
demand for credit,
best lending rate charged by the note-issuing banks was
reduced from 16% to 15% and the maximum deposit rates set by
the Hong Kong Association of Banks were lowered, also by 1%.
(12). These were the first changes for over 5 months
in
the
(11)
/ The
Interest Rates (% p.a.)
As at end of
banks
dtc
1981 Dec
12 1/2
14
HKAB: Interest Interest rates rates paid on paid on 3-month 3-month
3-month deposits with a money market
deposits with representative
(interbank)
rate
13 5/8
The Best Lending Rate charged by the note-
Interest rates paid on 3-month Eurodollar
issuing banks deposits
16
13 7/8
1982 Jan
12 1/2
14 1/4
14 1/4
16
14 5/8
Feb
12 1/2
14 5/8
14 13/16
16
15 1/16
Mar
12 1/2
14 3/4
15 5/16
Apr
12 1/2
14 5/8
14 7/8
May
12 1/2
14 3/8
Jun
11 1/2
14
14 5/16 14 1/8
GG551
16
16
16
14 7/8
14 3/8 16
(12) From 1st March the Hong Kong Association of Banks amended its interest rate agreement covering Hong Kong dollar deposits with licensed banks due in up to 12 months, by introducing additional quotations for 24 hours call, 1-week, 2-weeks, 1-month, 2-months and 9-months deposits. Also from that date the interest rate for any Hong Kong dollar deposit with any member bank of at least $500,000 maturing in less than 3 months is no longer subject to the interest rate agreement and is determined by agreement between the individual depositor and the bank concerned.
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