The composite interest rate remained at 2.86% at the end of January, the same as December's figure, the Monetary Authority says. Longer term interbank and time-deposit rates rose but short-term rates fell, while savings-deposit rates were unchanged.

The authority's Deputy Chief Executive Peter Pang said the composite interest rate remained steady in January while interbank rates edged up towards the end of the month and in the early part of February. "If these increases persist, we may see an increase in the composite rate," he said.

As US interest rates began rising in the middle of 2004, the composite interest rate has increased by 262 basis points, compared with the upward adjustments of between 275 and 300 basis points in the best lending rates of banks by the end of January.

Click here for figures from the end of the fourth quarter of 2003 to the end of January 2007.