Composite interest rate remains at 0.19% by end-September 2021
This is as the weighted funding cost for deposits was steady during the month.
The composite interest rate at the end of September 2021 remained unchanged at 0.19% as the weighted funding cost for deposits was steady, the Hong Kong Monetary Authority (HKMA) announced.
HKMA said that the data from retail banks, which account for about 90% of the total customers’ deposits in the banking sector, are used in the calculation.
The composite interest rate is a weighted average interest rate of all Hong Kong dollar interest-rate-sensitive liabilities, including deposits from customers, amounts due to banks, negotiable certificates of deposit and other debt instruments, and all other liabilities that do not involve any formal payment of interest but the values of which are sensitive to interest rate movements on the books of banks.