HSBC lowers most lending rates by 55 points
HSBC is reducing its base rate for all lending rates, except on home loans, to three per cent from 3.55 per cent following the European Central Bank's decision to lower its reference rate.
The home loans base rate, the base for the bank's variable mortgage lending, is being decreased to 2.75 per cent from 3.35 per cent.
However, a number of HSBC's core saving rates will remain unchanged in spite of the reduction in the ECB's intervention rate to encourage savings.
The bank said this should encourage savings and would help ensure that the funding base for banks in Malta remained strong in spite of the low interest rate environment.
The bank said that it was continuing to balance both the requirements of its saving and borrowing customers.
Interest rates would continue to be closely monitored and would 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.
The bank has retained its higher rate on the online savings account at three per cent per annum rate for balances over €5,000, in line with its drive to encourage use of electronic banking and automated channels. Term deposit rates for two, three, four and five years were reduced by less than the reduction in ECB interest rates to 2.5 per cent.
The ECB recently slashed rates by 75 basis points to 2.5 per cent. The Governor of the Central Bank Michael Bonello and Finance Minister Tonio Fenech last week both said they expected local banks to pass on the full benefit of the rate cuts to consumers.
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J Galea
Dec 10th 2008, 22:40
I would like to invite you as a reader to surf on the link
https://www.hsbc.com.mt/1/2/useful-info-dropdown/euro-credit-interest-rates
HSBC savings rates have been also been reduced excluding the Online Account. HSBC please clarify this situation?
ECB lowered rates by 0.75 not by 0.55. This is social justice?
Stephan Camilleri
Dec 10th 2008, 20:21
This is the perfect mechanism when it comes to interest rates cuts or ups. The local banks follow the ECB.
On a similar bases the local goverment has to operate a mechanism were the oil prize reflects petrol and petrolum products, and eventally electric service cost.
The process that the goverment has employed in buying oil and petrolum products has been of a speculation type. And now we have to pay dearly, as this goverment has speclulated with the tax payers money.
David Borg
Dec 10th 2008, 18:52
What about BOV? Any news of reductions?
Rita Azzopardi
Dec 10th 2008, 15:44
Because HSBC does as it pleases with no one monitoring and controlling it!!
M Scicluna
Dec 10th 2008, 10:51
Why was the rate reduced to 2.75% and not to 2.5% as announced by ECB?