The new interest rate for Variable-Rate Ontario Savings Bonds (OSBs), series 1997 through 2002, for the next six months will be 2.5%.

The rate was announced today by Ontario Finance Minister Janet Ecker.

Variable-Rate OSBs have been issued every year since 1996. The variable rates are reviewed and re-set every six months according to prevailing market conditions.

During the three-week sales campaign in June 2002, $2.6 billion in OSBs were sold throughout the province.

Ontario Savings Bonds are backed 100% by the Province of Ontario and can only be purchased by Ontario residents.