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Hong Kong Sets 5% Interest for Silver Bond Series 2026
The Hong Kong Monetary Authority (HKMA), representing the Hong Kong Special Administrative Region Government, has officially announced a 5% per annum interest rate for the fourth interest payment of the Silver Bond Series due in 2026. This decision marks a significant milestone in the country’s efforts to provide stable returns for investors, particularly targeting senior citizens.
The interest rate was determined based on the higher of the prevailing Floating Rate and Fixed Rate as of August 4, 2025. At the time of determination, the Floating Rate stood at 1.68%, while the Fixed Rate was significantly higher at 5.00%. Consequently, the Fixed Rate was chosen for the interest payment scheduled for August 18, 2025.
The decision to set the interest rate at 5% reflects the fixed rate’s advantage over the floating rate, ensuring investors receive a substantial return. It is worth noting that the choice of interest rate is influenced by the year-on-year rates of change in the 2019/20-based Composite Consumer Price Index, which reported an arithmetic average of 1.68% from January to June 2025.
This economic indicator plays a crucial role in assessing the inflationary environment, influencing bond interest rates. The HKMA’s role in managing this bond issuance highlights its ongoing commitment to maintaining financial stability and providing viable investment options for the public.
In essence, the Silver Bond Series remains a key component of Hong Kong’s financial strategy, offering a hedge against inflation and promoting fiscal stability.
Source: Blockchain.News
