Composite interest rate down to 0.94% in July

This is due to decreases in weighted funding costs of deposits and interbank funds.

The composite interest rate decreased by 1 basis point to 0.94% by the end of July from 0.95% in June, ending a four-month streak of increases, according to the Hong Kong Monetary Authority of Hong Kong (HKMA).

The composite interest rate is a measure of the average cost of funds of banks. According to the HKMA, the decrease in the composite interest rate reflected decreases in the weighted funding cost for both deposits and interbank funds during the month.

The decrease ended a four-month streak of increases starting from March. In June, the composite interest rate shot up by 11 basis points to 0.95% from 0.84% in May after increases in funding for both deposits and interbank funds.