Iris Coleman
Feb 28, 2025 01:30
The Hong Kong Financial Authority introduced a 4% rate of interest for the fifth fee of the Silver Bond Sequence due in 2025, prioritizing the mounted charge over the floating charge.
The Hong Kong Financial Authority (HKMA) has introduced the rate of interest for the fifth curiosity fee of the Silver Bond Sequence due in 2025, as per their newest launch. The choice impacts Difficulty Quantity 03GB2509R, a part of the Authorities Bond Programme’s Retail Bond Issuance.
Curiosity Charge Particulars
As outlined within the Difficulty Round dated 9 August 2022, the curiosity fee is scheduled for 14 March 2025. The HKMA declared that the related rate of interest can be decided based mostly on whether or not the prevailing floating charge or mounted charge was greater on 28 February 2025. In accordance with the HKMA, the mounted charge was set at 4.00%, whereas the floating charge was calculated at 1.82%.
Consequently, the mounted charge of 4.00% each year was prioritized, marking it because the relevant rate of interest for the upcoming fee.
Context and Implications
The Silver Bond Sequence is a key part of the Hong Kong Particular Administrative Area Authorities’s technique to offer steady funding alternatives for senior residents. The choice to use the mounted charge displays a cautious method in making certain favorable returns for buyers amidst fluctuating market circumstances.
Moreover, the floating charge was derived from the year-on-year modifications within the Composite Client Value Index (CPI) for the months main as much as January 2025. The index confirmed diverse charges: August 2024 at 2.50%, September 2024 at 2.20%, and October to December 2024 at 1.40%, with January 2025 reaching 2.00%. The arithmetic common of those figures resulted within the aforementioned floating charge of 1.82%.
For extra particulars, consult with the official announcement by the Hong Kong Financial Authority.
Picture supply: Shutterstock
