HSBC Bank Malta plc is reducing its base rate for all lending rates except Home Loans to three per cent. The Home Loans Base Rate, which is the base for the bank’s variable mortgage lending, is being reduced to 2.75 per cent.

The revised base rates are effective as from today. The announcement follows the European Central Bank decision to cut its reference rate.

HSBC said it has left a number of its core saving rates unchanged in spite of the reduction in the ECB intervention rate.

This will encourage savings and is a significant benefit for thousands of savings customers at HSBC, the bank said. This will help ensure that the funding base for banks in Malta remains strong in spite of the low interest rate environment.

HSBC Bank Malta has retained its higher rate on the HSBC On Line Savings Account at three per cent per annum rate for balances over e5,000.

This is in line with the bank’s drive to encourage use of electronic banking and automated channels. Term deposit rates for two, three, four and five years have been reduced by less than the reduction in ECB interest rates to 2.5 per cent.