Composite Interest Rate: End of January 2025

The Hong Kong Monetary Authority (HKMA) announced that the composite interest rate at the end of January 2025 decreased by 8 basis points to 2.16%, down from 2.24% at the end of December 2024. This decline reflects lower weighted funding costs for both deposits and interbank funds during the month. The composite interest rate serves as an average measure of banks’ cost of funds and includes various interest-rate-sensitive liabilities. Historical data on the composite interest rate, covering from the end of the fourth quarter of 2003 to January 2025, is available in the Monthly Statistical Bulletin on the HKMA website. It is important to note that the composite interest rate does not account for other lending costs, such as operating and credit costs. Resources: https://www.hkma.gov.hk/eng/news-and-media/press-releases/2025/02/20250219-5/