Hong Kong Monetary Authority Announces 3.50% Interest Rate for Silver Bond Series Due 2024

The Hong Kong Monetary Authority (HKMA), acting on behalf of the Hong Kong Special Administrative Region Government, has announced the per annum interest rate for the sixth interest payment of the Silver Bond Series due 2024. The announcement, made on 29 July 2024, confirms an interest rate of 3.50% per annum.

Details of the Interest Rate Determination

According to the Issue Circular dated 29 June 2021, the sixth interest payment for the Silver Bond Series (Issue Number 03GB2408R) is scheduled for 12 August 2024. The interest rate is determined based on the higher of the prevailing Floating Rate and Fixed Rate as of 29 July 2024. The Floating Rate was recorded at +1.60%, while the Fixed Rate stood at +3.50%. Consequently, the interest rate for the payment has been set at 3.50% per annum.

Revised Payment Date

The original payment date, 10 August 2024, falls on a Saturday, which is not a business day in Hong Kong. Therefore, the interest payment date has been rescheduled to 12 August 2024, the next business day. Interest will accrue until the new payment date.

Inflation Data Impact

The Floating Rate was calculated based on the year-on-year rates of change in the 2019/20-based Composite Consumer Price Index (CPI) from January to June 2024. The monthly CPI changes ranged from +1.10% to +2.10%, with an arithmetic average of +1.60%.

For more information, visit the official HKMA website.