Composite Interest Rate: End of January 2018

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21 Feb 2018

Composite Interest Rate: End of January 2018

The Hong Kong Monetary Authority (HKMA) announced today (Wednesday) the composite interest rate at the end of January 2018.1

The composite interest rate, which is a measure of the average cost of funds of banks, decreased by 1 basis point to 0.37% at the end of January 2018, from 0.38% at the end of December 2017 (see Chart 1 in the Annex).During the month, the weighted funding costs for both deposits and interbank funds decreased slightly (see Chart 2 in the Annex).

The historical data of the composite interest rate from the end of the fourth quarter of 2003 to the end of January 2018 are available in the Monthly Statistical Bulletin on the HKMA website ( The next data release is scheduled for 19 March 2018 and will provide the composite interest rate at the end of February 2018.

Hong Kong Monetary Authority
21 February 2018



Chart 1

End-of-period figures.


Chart 2

End-of-period figures.

1The 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. Data from retail banks, which account for about 90% 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.

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Last revision date : 21 February 2018