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Hong Kong’s Composite Interest Rate Drops Amid Economic Adjustments

Hong Kong’s Composite Interest Rate Drops Amid Economic Adjustments

Published:
2025-07-19 08:05:02
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BTCCSquare news:

The Hong Kong Monetary Authority (HKMA) has cut the composite interest rate to 1.26% at the end of June 2025, down 35 basis points from May's 1.61%. The decline reflects lower funding costs for retail banks, which hold 90% of customer deposits in the sector.

This benchmark rate measures the average cost of interest-sensitive liabilities but excludes operational and credit risk expenses. Starting July 2025, the HKMA will modify its publication methodology for the indicator.

|Square

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