The Hong Kong Monetary Authority (HKMA) has recently announced the interest rate for the fifth interest payment of the Silver Bond Series due in 2025. This decision specifically affects Issue Number 03GB2509R, which is part of the Government Bond Programme’s Retail Bond Issuance.
According to the HKMA, the interest payment is scheduled for 14 March 2025. The determination of the relevant interest rate was based on whether the prevailing floating rate or fixed rate was higher on 28 February 2025. The fixed rate was set at 4.00%, while the floating rate was calculated at 1.82%. As a result, the fixed rate of 4.00% per annum was prioritized and will be the applicable interest rate for the upcoming payment.
The Silver Bond Series plays a crucial role in the Hong Kong Special Administrative Region Government’s strategy to provide stable investment opportunities for senior citizens. By choosing the fixed rate, the HKMA is taking a cautious approach to ensure favorable returns for investors, especially in the face of fluctuating market conditions.
The floating rate was determined based on the year-on-year changes in the Composite Consumer Price Index (CPI) leading up to January 2025. The index showed varying rates, with August 2024 at 2.50%, September 2024 at 2.20%, and October to December 2024 at 1.40%. In January 2025, the rate reached 2.00%. Taking the arithmetic average of these figures resulted in the aforementioned floating rate of 1.82%.
For more information, please refer to the official announcement by the Hong Kong Monetary Authority.
