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HK to Deregulate Interest Rate as From July 3
The Hong Kong Monetary Authority (HKMA) announced Monday that the final phase of interest rate deregulation covering Hong Kong dollar savings and current accounts will proceed as scheduled on July 3, 2001.
"We have conducted an assessment of current economic and financial conditions and have concluded that the environment is not unfavorable to proceed with the final phase of deregulation on schedule, provided that there are no major adverse developments in the meantime," said David Carse, deputy chief executive of the HKMA.
"This view is shared by the Exchange Fund Advisory Committee, the Banking Advisory Committee and the Deposit-taking Companies Advisory Committee," Carse said.
This is the final part of a two-phase plan to deregulate the remaining Interest Rate Rules in order to promote market liberalization and enhance competition in the banking sector as part of the Banking Sector Reform Program undertaken by the HKMA since 1999.
Once this final phase of deregulation is implemented, interest rates on all types of deposits will be determined by competitive market forces.
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