TNAG-1483-FCO40-2037-Economic-situation-in-Hong-Kong-1986 — Page 222

this total, loans extended to the manufacturing sector grew by 13.0% during the first half of 1986, in contrast to a slight

the during decrease

second half of 1985. Loans to the

wholesale and retail trade sector

half of first

this

Loans year. purchase of residential property grew by 13.3%.

grew by 6.9% during the for the individuals

to

Interest rates

3.14

local

In late

Interest rates in the United States were fairly

This led stable during the first half of 1986.

to generally stable Hong Kong dollar money market interest rates. April,

interest rates, particularly overnight and short-term rates, experienced considerable fluctuations due to the floatation of the Cathay Pacific shares in the local stock market which attracted a large number of applicants. Otherwise, local interest rates remained slightly below those of the US dollar for most of the first half of 1986.

3.15

the

Hong Kong dollar deposit rates administered by

Banks (HKAB) Hong Kong Association of

on were adjusted

two (11). occasions during the first half of 1986

At the end of

June, the best lending rate offered by the note-issuing banks was 7.5%.

(11)

/The

Interest rates paid by members of the Hong Kong Association of Banks, and the best lending rate (BLR) of the note-issuing banks (%):

Effective from

Savings

1 month

3 or 6 months

BLR

24.6.85

2 3/4

3 1/2

3 1/2

8

15.7.85

2 1/4

3

3 1/4

7

19.7.85

1 3/4

2 1/2

2 3/4

6

2.9.85

2 1/4

3

3 1/4

7

1.4.86

3

3 3/4

4 1/4

8

12.5.86

2 3/4

3 1/2

4

7 1/2

28