The European Central Bank has announced a decrease in its Reference Rate.

As a result of the ECB interest rate change and to reflect current market conditions, HSBC Bank Malta is reducing its Base Rate for all lending rates except Home Loans to 3.0 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 have been effective as from Wednesday 10 December.

HSBC 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. This will help ensure that the funding base for banks in Malta remains strong in spite of the low interest rate environment.

With the majority of the significant rate cuts being passed on to HSBC personal and corporate customers, HSBC continues to balance both the requirements of its saving and borrowing customers. Interest rates will continue to be closely monitored and will be adjusted in the light of market conditions including possible further ECB rate reductions, the cost of wholesale funds and HSBC’s assessment of credit risk in line with Malta’s economic performance.

HSBC Bank Malta has retained its higher rate on the HSBC On Line Savings Account at an attractive three per cent per annum rate for balances over €5,000. 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.