XN000022-1991-05-29 — Page 9

WEDNESDAY, MAY 29, 1991

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SECONDLY, THERE WERE A NUMBER OF FACTORS THAT WOULD CONTRIBUTE TO A MODERATION OF INFLATION IN DUE COURSE.

HE SAID THESE INCLUDED THE RECENT STRENGTHENING OF THE U.S. DOLLAR, LOWER OIL PRODUCT PRICES AFTER THE END OF THE GULF WAR, STABLE WORLD COMMODITY PRICES, LOWER INFLATION RATES IN THE ECONOMIES OF HONG KONG'S TRADING PARTNERS, AND A GENERALLY LESS RAPID INCREASE IN LOCAL WAGES AND SALARIES.

"THE PROBLEM WE FACE IS THAT WE ARE NOW LOCKED INTO A STATE OF MIND THAT FEEDS UPON ITSELF,' SIR PIERS NOTED.

TT

"AND SO WE MUST TAKE SOME STEPS TO DAMPEN THE EXPECTATIONS FROM WHICH WE ARE SUFFERING, HE ADDED.

FOR THE LONGER TERM, THE FINANCIAL SECRETARY SAID, LABOUR SUPPLY AND LABOUR PRODUCTIVITY WOULD REMAIN DETERMINANTS OF NON-INFLATIONARY GROWTH FOR THE ECONOMY.

INFLATIONARY

INCREASES IN THE CRUCIAL

FS OUTLINES MEASURES TO ATTACK INFLATION

*

THE GOVERNMENT THIS (WEDNESDAY) EVENING OUTLINED A PACKAGE MEASURES TO CURB HIGH INFLATION RATE.

OF

THE FINANCIAL SECRETARY, THE HON SIR PIERS JACOBS, WHEN WINDING UP THE MOTION DEBATE ON INFLATION IN THE LEGISLATIVE COUNCIL, SAID THE MEASURES

INCLUDED:

*

FEBS AND

THE FREEZING FOR THE NEXT NINE MONTHS ALL PLANNED IN DEPARTMENTAL

CHARGES WHICH HAD ANNOUNCED BY JUNE 1;

INCREASES NOT BEEN

*

INFORMING

BANKS AND

DEPOSIT-TAKING COMPANIES

TO

REMAIN

VIGILANT IN ENSURING THAT THEIR CUSTOMERS HAD THE ABILITY TO TO REPAY LOANS AND THAT COLLATERAL WAS REALISTICALLY VALUED HELP CURTAIL PROPERTY SPECULATION;

THE REMOVAL OF THE ONE DOLLAR FUEL SURCHARGE IN TAXI FROM JUNE 2 TO ALLEVIATE THE BURDEN ON TRANSPORT COSTS;

FARES

BANKS

CHANGE PUBLIC

HIGHER INTEREST RATES BY THE HONG KONG ASSOCIATION OF TO DAMPEN INFLATIONARY EXPECTATION AND HELP PERCEPTION ABOUT INFLATION;

THE OF THE NET DEFLATIONARY IMPACT OF

EARLIER RESTORATION BUDGETTED SURPLUS THROUGH THE PROGRAMME OF GOVERNMENT BORROWING, WHICH WAS NOW UNDER ACTIVE PREPARATION;

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CONSIDERATING

THE

POSSIBILITY OF ADMITTING

MORE

WORKERS TO

LABOUR ALLEVIATE THE CONSTRAINTS ON WHICH CONSTITUTED BOTH A BOTTLENECK ON ECONOMIC GROWTH AN IMPORTANT SOURCE OF INFLATION; AND

IMPORTED RESOURCES

AND

/* THE HOUSING