This is the unedited press release from the Hong Kong Monetary Authority.


The composite interest rate, which reflects the average cost of funds of banks, fell slightly by 4 basis points to 0.75% at the end of May 2008, from 0.79% at the end of April 2008 . This followed a decrease of 19 basis points in April 2008. The mild drop in the composite interest rate in May 2008 reflected downward adjustments of medium-term interbank rates, while savings deposit rates were unchanged.

However, in the first two weeks of June the liquidity condition in the interbank market appeared to have tightened moderately, with the interbank rates rising across-the-board. Looking ahead, the composite interest rate will continue to be influenced by changes in US interest rates and domestic liquidity conditions.


Available at:

http://www.info.gov.hk/hkma/eng/press/press_f.htm