Composite interest rate rises

January 19, 2012

The composite interest rate rose five basis points from 0.48% in November to 0.53% at the end of December, the Monetary Authority said today.
 
Liquidity conditions in the interbank market tightened in December, with HIBORs rising across-the-board by six to 34 basis points.
 
The rise in the composite interest rate reflected increases in the weighted funding cost for both deposits and interbank funds during the month.
 
The composite interest rate is a weighted average interest rate of all Hong Kong dollar interest bearing liabilities, which include deposits from customers, amounts due to banks, negotiable certificates of deposit and other debt instruments, and Hong Kong dollar non-interest bearing demand deposits on the books of banks.
 
Data from retail banks, which account for about 90% of the total customers' deposits in the banking sector, are used in the calculation.