Source: Hong Kong Government special administrative region
Composite Interest Rate: End of June 2025
The composite interest rate, which is a measure of the average cost of funds of banks, decreased by 35 basis points to 1.26 per cent at the end of June 2025, from 1.61 per cent at the end of May 2025 (see Chart 1 in the Annex). The decrease in composite interest rate reflected the decreases in the weighted funding cost for deposits during the month (see Chart 2 in the Annex) (Note 2).
The HKMA publishes the composite interest rate on a monthly basis. Beginning with the end-July 2025 statistics, the monthly publication will only be released in the Monthly Statistical Bulletin on the HKMA website (www.hkma.gov.hk/media/eng/doc/market-data-and-statistics/monthly-statistical-bulletin/T0605.xls
Note 1: The composite interest rate is a weighted average interest rate of all Hong Kong dollar interest-rate-sensitive liabilities, which include 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 (such as Hong Kong dollar non-interest bearing demand deposits) on the books of banks. Data from retail banks, which account for about 90 per cent of the total customers’ deposits in the banking sector, are used in the calculation. It should be noted that the composite interest rate represents only average interest expenses. There are various other costs involved in the making of a loan, such as operating costs (e.g. staff and rental expenses), credit cost and hedging cost, which are not covered by the composite interest rate.Issued at HKT 16:30
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