The composite interest rate fell to 0.79% at the end of April from 0.98% at the end of March, the Monetary Authority says.

Following a drop of 37 basis points in March, the 19-basis-point decline in the April composite interest rate reflected falls in short-term interbank and time deposit rates, which offset the modest rise in funding cost for deposits with maturity over one month, while savings deposit rates were unchanged.

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

In April local interbank offering rates fell up to 32 basis points for funds with maturity of one month or less, while that for funds with maturity over one month rose up to 53 basis points.

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