TNAG-2977-FCO40-1469-Economic-policy-in-Hong-Kong-1982 — Page 200

the monetary sector (a decrease in their net spot foreign

currency assets) of $6,872 million, after an outflow during

the fourth quarter of $2,457 million.

Interest rates

3.13

Interest rates paid or charged by banks in Hong Kong

remained generally stable throughout the first quarter. The

best lending rate charged by the two note-issuing banks stayed

at 16% and the deposit rate structure set by the Hong Kong

Association of Banks was also unchanged, apart from the

introduction of quotations for additional periods from 1st

March 1982. Also from that date the interest rate paid on

deposits with member banks of at least $500,000 maturing in less than 3 months is no longer subject to the interest rate

agreement; as a result banks now bid for such deposits at

rates close to the going money market rates. Interest rates

offered by deposit-taking companies, which again are largely

based on money market rates, moved within a narrow range during most of the first quarter (11)

•

(11)

/ The

3-month

As at end of

deposits

with banks

dtc

Interest Rates

HKAB: Interest

rates paid on

Interest rates paid on 3-month deposits with a representative

3-month money market

(interbank)

rate

% p.a.

The Best Lending

Rate charged by

the note- issuing banks

1981 Dec

12 1/2

14

13 5/8

16

1982 Jan

12 1/2

14 1/4

14 1/4

16

Feb

12 1/2

14 5/8

14 13/16

16

Mar

12 1/2

14 3/4

15 5/16

16

19