HSBC, BoV lower base rate

After the European Central Bank announced a decrease in its reference rate from 4.25 to 3.75 per cent, HSBC and Bank of Valletta last week lowered their base rate to 3.75 per cent.

HSBC Bank Malta reduced its home loan base rate (HMLR) from 4.25 to 3.75 per cent. The HMLR is the base for the bank's variable mortgage lending.

Reflecting the current market conditions, HSBC said it has adjusted its base rate for all other lending to 3.95 per cent.

The revised base rates are effective from tomorrow.

HSBC has also reduced savings rates in line with the ECB rate cut, with the exception of the HSBC On Line Savings Account which has been retained at three per cent per annum. This is in line with bank policy to encourage use of electronic banking and its automated channels, the bank said.

Bank of Valletta's lower base rate of 3.75 also comes into effect tomorrow. The bank said that interest rates on all deposit accounts denominated in euro will decrease by 0.50 per cent per annum.

Interest rates charged on commercial loans and overdrafts, personal loans and mortgages will be revised downwards by 0.50 per cent per annum. Debit interest rates on credit card accounts will also be lowered by 0.50 per cent per annum from tomorrow.