Hong Kong’s Composite Interest Rate Dips to 2.02% in April 2025
Hong Kong’s monetary landscape saw a subtle shift as the composite interest rate edged down to 2.02% in April 2025, a 5-basis-point decline from March. The Hong Kong Monetary Authority attributed the drop to reduced funding costs for deposits, signaling a marginal easing in bank capital expenses.
The composite rate—a barometer of banks’ average funding costs—reflects the weighted average of all HKD interest-sensitive liabilities. While the movement is modest, it underscores the dynamic interplay between monetary policy and financial market conditions in Asia’s premier banking hub.