TNAG-2475-FCO40-3605-Hong-Kong-exchange-fund-report-and-accounts-for-1991-1992 — Page 14

CONFIDENTIAL

mid-September. Local interbank interest rates then moved closely

with corresponding USD interest rates for the rest of the year,

falling steadily (in terms of the three-month rate) to 4 15/16% at

end-1991. The gap between the corresponding Euro-dollar deposit

rate and HIBOR averaged 0.53 of a percentage point over the year.

11.

Deposit rates administered by HKAB were changed on six

occasions during 1991, comprising one upward adjustment in May, and

five downward adjustments in January, July, August, September and

November respectively. At end-1991, the savings and three-month deposit rates were 3 1/2% and 4 3/4% respectively, while the best

lending rate was 8 1/2%. The corresponding rates at end-1990 were

5 1/2%, 6 3/4% and 10% (see Table 2 on page 7).

CONFIDENTIAL