TNAG-1483-FCO40-2037-Economic-situation-in-Hong-Kong-1986 — Page 52

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

3.15

by

As a move to counter the pressure caused

speculation on a revaluation of the linked exchange rate, the

Hong Kong dollar deposit rates administered by the Hong Kong

Association of Banks (HKAB) were adjusted further downward in

(13). mid-August from an already rather low level

At the

end of September, the HKAB deposit rates ranged from 2% for

savings deposits to 4%

4% for 12-month deposits, and the best lending rate offered by the note-issuing banks was 6.5%.

The foreign exchange market

3.16

During the third quarter, the exchange rate of the

Hong Kong dollar against the US dollar remained stable around

the linked rate of HK$7.80 to US$1. In August, unfounded

speculation that the United States authorities might initiate currency talks with Hong Kong generated much upward pressure

on the market exchange rate. The pressure subsequently

subsided as the Government reaffirmed its policy of keeping

the linked rate unchanged. At the end of

of September, the

market exchange rate stood at HK$7.802 to US$1.

(13)

/3.17

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

Effective

from

Savings

1 month

3-month and 6-month

BLR

Į

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

16.8.86

2

2 3/4

3 1/4

7 1/2 6 1/2

30

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