Hong Kong's interest rate up to 0.26% in May

Boosted by higher weighted funding costs.

According to a report, the composite interest rate increased by one basis point to 0.26% at the end of May, from 0.25% at the end of April.

The Monetary Authority said the rise reflected increases in the weighted funding cost for both deposits and interbank funds.

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

Data from retail banks, which account for about 90% of the total customers' deposits in the banking sector, are used in the calculation.