Hong Kong's composite interest rate dropped to 0.11 pct at the end of November, the lowest level since its inception in Dec. 2003, the Hong Kong Monetary Authority said on Thursday.

The composite interest rate, which is a measure of the average cost of funds of banks, dropped slightly by two basis points at this time from 0.13 pct at the end of October, after moving down from 0.15 pct at the end of August.

The fall was brought about by downward adjustments in time deposit rates and interbank rates, the Monetary Authority said.

In November, time deposit rates with maturities longer than three months dropped 0.25 to 3.75 basis points, while Hong Kong Interbank Offered Rates dropped across-the-board by 0.03 to 21.7 basis points.