Composite interest rate in HK falls to 2.22

HONG KONG, Dec. 19 (Xinhua) -- The composite interest rate in Hong Kong fell to 2.22 percent at the end of November from 3.25 percent at the end of October, Hong Kong Monetary Authority said on Wednesday.

Following a decrease of nine basis points in October, the 103- basis-point fall in November's composite interest rate was largely due to the downward adjustments in savings and time deposit rates, as well as interbank interest rates.

The reduction in the average cost of funds in November was attributed to cuts in customer deposit rates following market operations by the authority near the end of October. It led to the substantial easing of the previously tight interbank liquidity conditions and the subsequent increase in the aggregate balance of the banking system, the authority said.

Given the rising volatilities in global financial markets the composite interest rate will continue to be influenced by short-term changes in liquidity conditions, the authority's Deputy Chief Executive Peter Pang said.