The composite interest rate rose to 2.29% at the end of December, the Monetary Authority says.

Following a drop of 103 basis points in November, the 7-basis-point rise in December was partly due to the withdrawal of subscription monies for initial public offerings from banks' deposit base.

The authority's Deputy Chief Executive Peter Pang said the composite interest rate will continue to be influenced by short-term changes in liquidity conditions, in view of high volatilities in global financial markets and upcoming IPO activities.