The composite interest rate fell to 0.98% at the end of March, from 1.35% at the end of February, the Monetary Authority says.

Following a fall of 33 basis points in February the 37-basis-point fall in the March composite interest rate reflected across-the-board drops in local interest rates, including savings, time deposit and interbank interest rates.

Authority Deputy Chief Executive Peter Pang said today the average cost of funds has dropped in recent months with the US interest rate fall. He expected the composite interest rate to be further affected by changes in US interest rates and domestic liquidity conditions.

Local interbank offering rates fell 18 to 130 basis points across the board in March. Banks cut their best lending rates by 50 basis points on March 20 and lowered savings deposit rates on lesser magnitudes.

Past data of the composite interest rate is available from the authority's Monthly Statistical Bulletin.