Hong Kong’s June composite interest rate up 5 basis points

Upward adjustment of the weighted deposit rate was seen from the data from retail banks.

The composite interest rate increased by five basis points to 0.31% in June, from 0.26% in May.

The Monetary Authority said on Tuesday the rise reflected an upward adjustment of the weighted deposit rate.

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, according to a government report.

Data from retail banks, which accounts for 90% of total customer deposits in the banking sector, are used in the calculation.