The composite interest rate rose from 2.84% at the end of January to 2.94% at the end of February, the Monetary Authority says.

This followed a fall of four basis points in the composite interest rate in January. The increase in the rate in February mainly reflected the upward adjustment in interbank interest rates and customer deposit rates during the month.

The authority's Deputy Chief Executive Peter Pang said said the composite interest rate has been steady in recent months. The slight increase in the average cost of funds of banks in February reflected the increase in interbank interest rates and customer deposit rates, which moved in line with rising US interest rates during the month.

The historical data of the composite interest rate from the end of the fourth quarter of 2003 to the end of February 2006 are available in the Monthly Statistical Bulletin on the authority's website.