HSBC Bank Malta plc has announced an increase in its euro base rate to 3.85 per cent in the wake of the decision by the European Central Bank (ECB) to increase its rate by 0.25 per cent to 3.75 per cent.

The new rate, effective immediately, applies to all personal lending and commercial lending linked to the bank’s euro base rate.

HSBC said its euro base rate is consistently 0.10 per cent over the European Central Bank reference rate and provided a stable base rate compared to the alternative market rate of three or six month Euribor which fluctuated on a daily basis and was currently 22 basis points and 35 basis points respectively over the ECB rate.