Hong Kong, Oct. 19 (Xinhua) -- Hong Kong's composite interest rate fell to 0.13 percent at the end of September, the lowest level since its inception in December 2003, the Hong Kong Monetary Authority said on Monday.

    The composite interest rate, which is a measure of the average cost of funds of banks, dropped by two basis points at this time from 0.15 percent at the end of August. The fall was brought about by downward adjustments in time deposit rates, the Monetary Authority said.

    Authority Deputy Chief Executive Peter Pang noted that ample liquidity in the banking system continued to underpin the decline in the average cost of funds of banks. He expected the composite interest rate will continue to be affected by domestic as well as external monetary conditions.

    In September time deposit rates fell slightly while local interbank offering rates rose across-the-board by 0.1 to six basis points.