The Hong Kong Monetary Authority Sets 5.00% Interest Rate for Silver Bond Series due 2026
The Hong Kong Monetary Authority (HKMA), on behalf of the Hong Kong Special Administrative Region Government, has announced the annual interest rate for the second interest payment of the Silver Bond Series due 2026. The interest rate has been fixed at 5.00% per annum, providing a stable investment opportunity for residents.
Announcement Details
The HKMA made the announcement on August 5, 2024, following the guidelines specified in the Issue Circular dated July 14, 2023. The Silver Bond Series, labeled with Issue Number 03GB2608R, is part of the Retail Bond Issuance Programme under the Government Bond Programme.
- The second interest payment for the bonds is scheduled for August 19, 2024.
- The interest rate was calculated by comparing the prevailing Floating Rate and Fixed Rate as of August 5, 2024.
- Fixed Rate: +5.00%
- Floating Rate: +1.60%
With the Fixed Rate surpassing the Floating Rate, the interest rate for the second payment has been established at 5.00% per annum.
Significance and Impact
The Silver Bond Series serves as a secure investment option for Hong Kong residents, particularly the elderly, offering a consistent interest income in a volatile economic climate. Setting the interest rate at a competitive 5.00% demonstrates the government’s dedication to providing appealing investment avenues to its citizens.
The interest rate announcement comes amidst various economic indicators. The Composite Consumer Price Index (CPI) for 2024 shows year-on-year changes ranging from +1.10% to +2.10% across different months, with an average of +1.60%. These figures influenced the determination of the Floating Rate.
For further details, please visit the official HKMA press release.
Hot Take: Stay Informed and Seize Investment Opportunities 🚀
Stay updated on government-issued investment opportunities like the Silver Bond Series to make informed decisions about your financial future. By keeping abreast of interest rate announcements and economic indicators, you can capitalize on stable and rewarding investment options in the market. Take advantage of attractive rates like the 5.00% offered by the Silver Bond Series to secure your financial well-being.
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