Hong Kong's composite interest rate dropped to 0.25%

Blame it on lower weighted funding costs.

According to a report, the composite interest rate was 0.25% at the end of February, down three basis points on January's figure.

The Monetary Authority announced the figure today, saying the decrease reflected a decline in the weighted funding costs for both deposits and interbank funds.

The composite interest rate is a measure of the average cost of funds of banks.