6.6
The movement in wage rates, or the price of labour,
has already been discussed in Chapter 4. Wage rates in the
manufacturing and
and in
in the
the building and construction sectors
continued to decline in real terms in the twelve months ending
March 1983, although there were increases in money terms.
Salaries in the tertiary services sectors, in terms of payroll
per capita, however, continued to increase both in money terms
and in real terms over this period.
6.7
The best lending rate, which can be taken as an
indicator of the price of financial capital, remained stable
during the first quarter of 1983, at 10 1/2%. After two adjustments in April and May, it stood at 13 1/2% at the end of the first half. The rate was subsequently reduced twice to
11 1/2% at the end of July. The interbank rate followed a
broadly similar trend. Apart from the demand and supply of financial capital in the local money market, the influence of interest rates prevailing in the world's major money markets,
particularly those in the United States, is an important factor explaining movements in local interest rates. But the upward adjustments in the second quarter were primarily aimed
at stabilizing the exchange
exchange value of the Hong Kong dollar, which was under strong downward pressure.
Prices of output
6.8
The rate of increase in the prices of manufacturing
output, as indicated by the unit value index of domestic
exports,
accelerated in 1983,
59
after slowing down for three
/consecutive
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