Hong Kong Monetary Authority Sets 4.00% Interest Rate for Silver Bond Series

The
Hong
Kong
Monetary
Authority
(HKMA),
acting
on
behalf
of
the
Hong
Kong
Special
Administrative
Region
Government,
has
announced
the
annual
interest
rate
for
the
fourth
interest
payment
of
the
Silver
Bond
Series
due
2025.
This
rate
is
part
of
the
Retail
Bond
Issuance
Programme
under
the
Government
Bond
Programme,
according
to
the
HKMA.

Interest
Rate
Announcement

According
to
the
Issue
Circular
dated
9
August
2022,
the
fourth
interest
payment
for
the
Silver
Bond
Series
(Issue
Number
03GB2509R)
is
scheduled
for
16
September
2024.
The
interest
rate
was
determined
based
on
the
higher
of
the
prevailing
Floating
Rate
and
Fixed
Rate
as
of
2
September
2024.

Determined
Rates

On
2
September
2024,
the
HKMA
reported
the
following
rates:

Based
on
these
rates,
the
interest
rate
for
the
fourth
interest
payment
has
been
set
at
4.00%
per
annum.

Context
and
Implications

The
Silver
Bond
Series
is
part
of
Hong
Kong’s
efforts
to
provide
stable
investment
options
for
its
residents,
particularly
the
elderly.
By
offering
a
fixed
interest
rate
of
4.00%,
the
government
aims
to
ensure
predictable
returns
amidst
fluctuating
market
conditions.
The
floating
rate,
derived
from
the
Composite
Consumer
Price
Index,
was
calculated
at
1.73%
based
on
year-on-year
changes
from
February
to
July
2024.

The
fixed
rate
of
4.00%
reflects
the
government’s
intention
to
provide
a
more
appealing
and
secure
investment
to
bondholders,
especially
in
an
economic
environment
where
inflation
rates
and
other
economic
indicators
are
in
flux.

For
more
details,
visit
the

Hong
Kong
Monetary
Authority.

Image
source:
Shutterstock