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The composite interest rate rose to 3.08% at the end of August, from 2.98% at the end of July, the Monetary Authority says.
During August, interbank rates rose across the board by 22 to 67 basis points, while savings deposit rates were unchanged.
Liquidity conditions in the interbank market tightened in August and the early part of September, due to the disruption in global credit markets and the new round of initial public offerings throughout September which tied up a substantial amount of short-term funds.
Looking ahead, the composite interest rate will continue to be influenced by short-term changes in liquidity conditions.
Since US interest rates began increasing in the middle of 2004, the composite interest rate has increased by 284 basis points, compared with upward adjustments of between 275 basis points and 300 basis points in banks' best lending rates by the end of August.
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