The composite interest rate fell to 0.75% at the end of May, from 0.79% at the end of April, the Monetary Authority says.

Following a fall of 19 basis points in April, the mild drop in May reflected downward adjustments of medium-term interbank rates, while savings deposit rates remained unchanged.

However, in the first two weeks of June the liquidity condition in the interbank market appeared to have tightened moderately, with interbank rates rising across-the-board.