The composite interest rate fell to 3.25% at the end of October, from 3.34% at the end of September, the Monetary Authority says.

Following a rise of 26 basis points in September, the nine-basis-point fall in the October composite interest rate was largely due to the interbank interest rates downward adjustment by 44 to 92 basis points.

The reduction in the average cost of funds in October was mainly because the previously tight interbank liquidity conditions were eased after the authority undertook market operations and bought US dollars in the month, and the subsequent increase in the banking system's Aggregate Balance.

While liquidity conditions appear to have stabilised recently, short-term changes brought about by equity-related fund-raising activities and rising volatilities in global financial markets will continue to influence the composite interest rate, the authority's Deputy Chief Executive Peter Pang said.

Past data of the composite interest rate is available on the authority's website.