Zach Anderson
May 19, 2025 08:24
Hong Kong’s monetary authorities reported that the complex interest rates decreased to 2.02%at the end of April 2025, reflecting the reduction in the cost of financing the weight of deposits.
Hong Kong Monetary Authority (HKMA) announced that it reduced the reduction in the complex interest rate to 2.02%from 2.07%in March 2025 at the end of April 2025.
Understanding complex interest rates
Complex interest rates serve as a measure of bank’s average funding costs and include weighted average interest rate of debt sensitive to all Hong Kong dollar interest rates. This includes customer deposits, money from banks, negotiated deposit certificates and other debt products. This data is derived from a retail bank and has about 90%of the total customer deposits in the banking sector.
Combined interest rates reflect average interest costs, but do not explain other loan -related costs such as operating, credit and hemp costs. Since June 2019, the calculation of this rate has been based on the local bank book’s interest rate risk (IRRBB) framework, which means that the current figures cannot be directly compared to the previous month.
Historical context and data availability
For those who are interested in the historical trend, HKMA provides data on complex interest rates that go back to the fourth quarter of 2003, which can be accessible through monthly statistical bulletin boards available on the HKMA website.
For more information and details, you can access HKMA’s press release.
This announcement emphasizes the importance of monitoring these indicators as economic conditions develop in the continuous discussion on the interest rate trend and the impact on the banking sector in Hong Kong.
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